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
years012n = ?€2 500€3 750

You deposit €2 500 at 8% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €3 750?

PV = €2 500FV = €3 750i = 8%
n = years
2.Easy
years0123…9PV = ?€12 000€12 000€12 000…

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €12 000i = 2%
PV = €
3.Medium
years01234567PV = ?€25 000

You need €25 000 in 7 years. An account pays 2% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €25 0002% / 4n = 7
PV = €
4.Medium
years0123…8PV = ?€5 000€5 000€5 000€5 000

An annuity pays €5 000 at the end of each year for 8 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €5 000i = 6%n = 8
PV = €
5.Hard
months0123…72€20 000AAAA7.2% / 12, I = ?

A loan of €20 000 is repaid with equal monthly payments over 6 years at 7.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0007.2% / 12N = 72
I = €
6.Hard
months0123…36€20 000A?AAA

A loan of €20 000 is repaid with equal monthly payments over 3 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €20 0004.2% / 12N = 36
A = €

Answer key

  1. 1. n = 6 years
  2. 2. PV = 600000 €
  3. 3. PV = 21742 €
  4. 4. PV = 31049 €
  5. 5. I = 4689 €
  6. 6. A = 592.3 €

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