Time value of money worksheet with answers

Free printable Time value of money worksheet: 6 problems from easy to exam level, with an answer key. Print it or save it as a PDF.

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Name: ____________________ Date: ____________

1.Easy

You will receive €8 000 in 12 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €8 000i = 2.5%n = 12

PV = €

2.Easy

You deposit €1 500 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €1 500i = 4.5%n = 7

FV = €

3.Medium

You need €10 000 in 10 years. An account pays 4.8% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €10 0004.8% / 12n = 10

PV = €

4.Medium

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 4% per year forever. The required return is 10% per year. Find the value PV of the property today.

C₁ = €6 000g = 4%r = 10%

PV = €

5.Hard

You borrow €20 000 at 5.4% per year, compounded monthly, and repay €625 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €20 000A = €6255.4% / 12

N = payments

6.Hard

You save €150 at the end of every month for 28 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1505.4% / 12N = 336

FV = €

Answer key

1. PV = 5948 €
2. FV = 2041 €
3. PV = 6194 €
4. PV = 100000 €
5. N = 35 payments
6. FV = 117348 €

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