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 deposit €7 500 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 = €7 500i = 4.5%n = 7

FV = €

2.Easy

You will receive €5 000 in 10 years. The interest rate is 5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €5 000i = 5%n = 10

PV = €

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 6.5% per year. Find the value PV of the property today.

C₁ = €20 000g = 2.5%r = 6.5%

PV = €

4.Medium

You invest €2 000 at a nominal rate of 3% per year, compounded quarterly. Find the value FV of the investment after 9 years.

PV = €2 0003% / 4n = 9

FV = €

5.Hard

You borrow €25 000 at 3.6% per year, compounded monthly, and repay €325 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 = €25 000A = €3253.6% / 12

N = payments

6.Hard

A loan of €20 000 is repaid with equal monthly payments over 5 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €20 0007.2% / 12N = 60

A = €

Answer key

1. FV = 10206 €
2. PV = 3070 €
3. PV = 500000 €
4. FV = 2617 €
5. N = 88 payments
6. A = 397.9 €

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