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 = ?€5 000€12 500

You deposit €5 000 at 5% 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 €12 500?

PV = €5 000FV = €12 500i = 5%
n = years
2.Easy
years0123456€10 000FV = ?

You deposit €10 000 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 6 years? Find the future value FV.

PV = €10 000i = 1.5%n = 6
FV = €
3.Medium
years0123…9PV = ?€6 000+2.5%+2.5%…r = 4.5%

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 4.5% per year. Find the value PV of the property today.

C1 = €6 000g = 2.5%r = 4.5%
PV = €
4.Medium
years0123…16€2 000FV = ?

You invest €2 000 at 6% per year with continuous compounding. Find the value FV after 16 years.

PV = €2 000r = 6%t = 16
FV = €
5.Hard
months0123…360€150 000A?AAA

A loan of €150 000 is repaid with equal monthly payments over 30 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €150 0006% / 12N = 360
A = €
6.Hard
months0123…360€250 000A?AAA

A loan of €250 000 is repaid with equal monthly payments over 30 years. The interest rate is 3% per year, compounded monthly. Find the monthly payment A.

P = €250 0003% / 12N = 360
A = €

Answer key

  1. 1. n = 19 years
  2. 2. FV = 10934 €
  3. 3. PV = 300000 €
  4. 4. FV = 5223 €
  5. 5. A = 899.3 €
  6. 6. A = 1054 €

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