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…12€1 000€2 010

An investment of €1 000 grows to €2 010 in 12 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €2 010n = 12
i = %
2.Easy
years01234€1 500FV = ?

You deposit €1 500 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 4 years? Find the future value FV.

PV = €1 500i = 6%n = 4
FV = €
3.Medium
years0123€10 000FV = ?

You invest €10 000 at 2% per year with continuous compounding. Find the value FV after 3 years.

PV = €10 000r = 2%t = 3
FV = €
4.Medium
years012PV = ?€20 000

You need €20 000 in 2 years. An account pays 3% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €20 0003% / 4n = 2
PV = €
5.Hard
months0123…N = ?€8 000€125€125€125€1253% / 12

You borrow €8 000 at 3% per year, compounded monthly, and repay €125 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 = €8 000A = €1253% / 12
N = payments
6.Hard
years0123…12€2 500€2 500€2 500FV = ?

You deposit €2 500 at the start of every year for 12 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 12? Find FV.

A = €2 500i = 5%n = 12
FV = €

Answer key

  1. 1. i = 5.99 %
  2. 2. FV = 1894 €
  3. 3. FV = 10618 €
  4. 4. PV = 18840 €
  5. 5. N = 70 payments
  6. 6. FV = 41782 €

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