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

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €12 000i = 5%

PV = €

2.Easy

You deposit €10 000 in a savings account that pays 5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €10 000i = 5%n = 10

FV = €

3.Medium

You invest €8 000 at a nominal rate of 6% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €8 0006% / 4n = 3

FV = €

4.Medium

An annuity pays €5 000 at the end of each year for 7 years. The interest rate is 4% per year. Find the present value PV of the annuity.

A = €5 000i = 4%n = 7

PV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 25 years at 4.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 6? Find the outstanding balance B.

P = €250 0004.2% / 12N = 300k = 72

B = €

6.Hard

You want €10 000 in 11 years. You save the same amount at the end of every month in an account paying 3.6% per year, compounded monthly. Find the monthly deposit A.

FV = €10 0003.6% / 12N = 132

A = €

Answer key

1. PV = 240000 €
2. FV = 16289 €
3. FV = 9565 €
4. PV = 30010 €
5. B = 211398 €
6. A = 61.86 €

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