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 €1 500 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €1 500i = 4%n = 8

FV = €

2.Easy

You deposit €5 000 at 6% 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 €15 000?

PV = €5 000FV = €15 000i = 6%

n = years

3.Medium

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 2% per year forever. The required return is 8% per year. Find the value PV of the property today.

C₁ = €2 000g = 2%r = 8%

PV = €

4.Medium

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 3% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €6 000g = 3%r = 7%

PV = €

5.Hard

You save €250 at the end of every month for 7 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2502.4% / 12N = 84

FV = €

6.Hard

You want €50 000 in 4 years. You save the same amount at the end of every month in an account paying 2.4% per year, compounded monthly. Find the monthly deposit A.

FV = €50 0002.4% / 12N = 48

A = €

Answer key

1. FV = 2053 €
2. n = 19 years
3. PV = 33333 €
4. PV = 150000 €
5. FV = 22842 €
6. A = 993.5 €

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