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
years0123…9PV = ?€2 500€2 500€2 500…

A foundation wants to pay a prize of €2 500 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €2 500i = 8%
PV = €
2.Easy
years01234567€1 000FV = ?

You deposit €1 000 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €1 000i = 6%n = 7
FV = €
3.Medium
years0123…9PV = ?€6 000+3%+3%…r = 7%

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 3% per year forever. The required return is 7% per year. Find the value PV of the property today.

C1 = €6 000g = 3%r = 7%
PV = €
4.Medium
periods0123…36511 + EAR = ?16% / 365

A credit card charges a nominal interest rate of 16% per year, compounded daily. Find the effective annual rate EAR in percent.

r = 16%m = 365
EAR = %
5.Hard
months0123…60€300€300€300FV = ?

You save €300 at the end of every month for 5 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3006% / 12N = 60
FV = €
6.Hard
months0123…60€8 000A?AAA

A loan of €8 000 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 = €8 0007.2% / 12N = 60
A = €

Answer key

  1. 1. PV = 31250 €
  2. 2. FV = 1504 €
  3. 3. PV = 150000 €
  4. 4. EAR = 17.35 %
  5. 5. FV = 20931 €
  6. 6. A = 159.2 €

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