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€2 500FV = ?

You deposit €2 500 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 = €2 500i = 7%n = 3
FV = €
2.Easy
years0123456€2 000€2 840

An investment of €2 000 grows to €2 840 in 6 years with annual compounding. Find the annual interest rate i in percent.

PV = €2 000FV = €2 840n = 6
i = %
3.Medium
years0123…13PV = ?€2 000€2 000€2 000€2 000

An annuity pays €2 000 at the end of each year for 13 years. The interest rate is 8% per year. Find the present value PV of the annuity.

A = €2 000i = 8%n = 13
PV = €
4.Medium
years0123…9PV = ?€8 000+2%+2%…r = 8%

A property is expected to earn net rent of €8 000 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 = €8 000g = 2%r = 8%
PV = €
5.Hard
months0123…36€25 000A?AAA

A loan of €25 000 is repaid with equal monthly payments over 3 years. The interest rate is 4.8% per year, compounded monthly. Find the monthly payment A.

P = €25 0004.8% / 12N = 36
A = €
6.Hard
months0123…180€50€50€50FV = ?

You save €50 at the end of every month for 15 years. The account pays 7.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €507.2% / 12N = 180
FV = €

Answer key

  1. 1. FV = 3063 €
  2. 2. i = 6.018 %
  3. 3. PV = 15808 €
  4. 4. PV = 133333 €
  5. 5. A = 747 €
  6. 6. FV = 16127 €

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