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

An investment of €4 000 grows to €7 390 in 12 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €7 390n = 12

i = %

2.Easy

You deposit €10 000 in a savings account that pays 2% interest per year, compounded annually. How much is in the account after 4 years? Find the future value FV.

PV = €10 000i = 2%n = 4

FV = €

3.Medium

You need €5 000 in 6 years. An account pays 6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0006% / 4n = 6

PV = €

4.Medium

You need €40 000 in 6 years. An account pays 6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €40 0006% / 12n = 6

PV = €

5.Hard

You borrow €12 000 at 6% per year, compounded monthly, and repay €300 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 = €12 000A = €3006% / 12

N = payments

6.Hard

You deposit €5 000 at the start of every year for 21 years, the first deposit today. The account pays 7% per year. How much is in the account at the end of year 21? Find FV.

A = €5 000i = 7%n = 21

FV = €

Answer key

1. i = 5.248 %
2. FV = 10824 €
3. PV = 3498 €
4. PV = 27932 €
5. N = 45 payments
6. FV = 240029 €

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