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 €5 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 2 years? Find the future value FV.

PV = €5 000i = 3.5%n = 2

FV = €

2.Easy

You deposit €2 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €2 000i = 4%n = 7

FV = €

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 3% per year forever. The required return is 6% per year. Find the value PV of the property today.

C₁ = €20 000g = 3%r = 6%

PV = €

4.Medium

An annuity pays €8 000 at the end of each year for 16 years. The interest rate is 3% per year. Find the present value PV of the annuity.

A = €8 000i = 3%n = 16

PV = €

5.Hard

You save €50 at the end of every month for 8 years. The account pays 3% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €503% / 12N = 96

FV = €

6.Hard

A loan of €15 000 is repaid with equal monthly payments over 7 years at 7.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0007.2% / 12N = 84

I = €

Answer key

1. FV = 5356 €
2. FV = 2632 €
3. PV = 666667 €
4. PV = 100489 €
5. FV = 5417 €
6. I = 4140 €

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