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€4 000€5 290

An investment of €4 000 grows to €5 290 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €5 290n = 4
i = %
2.Easy
years0123…9PV = ?€20 000

You will receive €20 000 in 9 years. The interest rate is 2% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 2%n = 9
PV = €
3.Medium
years0123…9PV = ?€12 000+1.5%+1.5%…r = 7.5%

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 7.5% per year. Find the value PV of the property today.

C1 = €12 000g = 1.5%r = 7.5%
PV = €
4.Medium
years0123…16PV = ?€1 500€1 500€1 500€1 500

An annuity pays €1 500 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 = €1 500i = 3%n = 16
PV = €
5.Hard
months0123…72€25 000A?AAA

A loan of €25 000 is repaid with equal monthly payments over 6 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €25 0004.2% / 12N = 72
A = €
6.Hard
months0123…144€300€300€300FV = ?

You save €300 at the end of every month for 12 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3004.8% / 12N = 144
FV = €

Answer key

  1. 1. i = 7.238 %
  2. 2. PV = 16735 €
  3. 3. PV = 200000 €
  4. 4. PV = 18842 €
  5. 5. A = 393.4 €
  6. 6. FV = 58265 €

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