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 €1 000 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €1 000i = 7%n = 3

FV = €

2.Easy

You deposit €1 000 at 8% 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 €2 500?

PV = €1 000FV = €2 500i = 8%

n = years

3.Medium

You need €25 000 in 9 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €25 0003.6% / 12n = 9

PV = €

4.Medium

A property is expected to earn net rent of €5 000 next year. The rent is expected to grow by 2% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €5 000g = 2%r = 7%

PV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 20 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 15? Find the outstanding balance B.

P = €250 0007.2% / 12N = 240k = 180

B = €

6.Hard

You deposit €6 000 at the start of every year for 22 years, the first deposit today. The account pays 5% per year. How much is in the account at the end of year 22? Find FV.

A = €6 000i = 5%n = 22

FV = €

Answer key

1. FV = 1225 €
2. n = 12 years
3. PV = 18090 €
4. PV = 100000 €
5. B = 98935 €
6. FV = 242583 €

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