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
years012n = ?€1 000€2 000

You deposit €1 000 at 4% 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 €2 000?

PV = €1 000FV = €2 000i = 4%
n = years
2.Easy
years0123…11€4 000FV = ?

You deposit €4 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €4 000i = 3.5%n = 11
FV = €
3.Medium
years0123…9PV = ?€6 000+4%+4%…r = 6%

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 4% per year forever. The required return is 6% per year. Find the value PV of the property today.

C1 = €6 000g = 4%r = 6%
PV = €
4.Medium
years01234€1 000FV = ?

You invest €1 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 4 years.

PV = €1 0005% / 12n = 4
FV = €
5.Hard
months0123…240€200 000A?AAA

A loan of €200 000 is repaid with equal monthly payments over 20 years. The interest rate is 7.2% per year, compounded monthly. Find the monthly payment A.

P = €200 0007.2% / 12N = 240
A = €
6.Hard
months0123…264€200€200€200FV = ?

You save €200 at the end of every month for 22 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2004.8% / 12N = 264
FV = €

Answer key

  1. 1. n = 18 years
  2. 2. FV = 5840 €
  3. 3. PV = 300000 €
  4. 4. FV = 1221 €
  5. 5. A = 1575 €
  6. 6. FV = 93440 €

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