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
years01234€2 000€2 550

An investment of €2 000 grows to €2 550 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €2 000FV = €2 550n = 4
i = %
2.Easy
years0123…9€7 500FV = ?

You deposit €7 500 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €7 500i = 2%n = 9
FV = €
3.Medium
years0123…8PV = ?€1 000€1 000€1 000€1 000

An annuity pays €1 000 at the end of each year for 8 years. The interest rate is 5% per year. Find the present value PV of the annuity.

A = €1 000i = 5%n = 8
PV = €
4.Medium
years0123…9PV = ?€5 000+2%+2%…r = 5%

A property is expected to earn net rent of €5 000 next year. The rent is expected to grow by 2% per year forever. The required return is 5% per year. Find the value PV of the property today.

C1 = €5 000g = 2%r = 5%
PV = €
5.Hard
months0123…72€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 6 years. The interest rate is 4.8% per year, compounded monthly. Find the monthly payment A.

P = €15 0004.8% / 12N = 72
A = €
6.Hard
months0123…180€200€200€200FV = ?

You save €200 at the end of every month for 15 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2006% / 12N = 180
FV = €

Answer key

  1. 1. i = 6.262 %
  2. 2. FV = 8963 €
  3. 3. PV = 6463 €
  4. 4. PV = 166667 €
  5. 5. A = 240.2 €
  6. 6. FV = 58164 €

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