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 = ?€500€500€500…

A foundation wants to pay a prize of €500 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €500i = 6%
PV = €
2.Easy
years01234567PV = ?€20 000

You will receive €20 000 in 7 years. The interest rate is 3% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 3%n = 7
PV = €
3.Medium
years01234567€5 000FV = ?

You invest €5 000 at a nominal rate of 4% per year, compounded quarterly. Find the value FV of the investment after 7 years.

PV = €5 0004% / 4n = 7
FV = €
4.Medium
years0123…14€20 000FV = ?

You invest €20 000 at 8% per year with continuous compounding. Find the value FV after 14 years.

PV = €20 000r = 8%t = 14
FV = €
5.Hard
months0123…N = ?€15 000€225€225€225€2255.4% / 12

You borrow €15 000 at 5.4% per year, compounded monthly, and repay €225 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 = €15 000A = €2255.4% / 12
N = payments
6.Hard
months0123…60€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 5 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €15 0006% / 12N = 60
A = €

Answer key

  1. 1. PV = 8333 €
  2. 2. PV = 16262 €
  3. 3. FV = 6606 €
  4. 4. FV = 61297 €
  5. 5. N = 80 payments
  6. 6. A = 290 €

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