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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years0123…9PV = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 3% interest per year. How much must be invested today? Find PV.

A = €1 000i = 3%
PV = €
2.Easy
years0123456€1 000€1 610

An investment of €1 000 grows to €1 610 in 6 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €1 610n = 6
i = %
3.Medium
years01234567PV = ?€50 000

You need €50 000 in 7 years. An account pays 5% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €50 0005% / 12n = 7
PV = €
4.Medium
years0123…11€20 000FV = ?

You invest €20 000 at 2% per year with continuous compounding. Find the value FV after 11 years.

PV = €20 000r = 2%t = 11
FV = €
5.Hard
months01…60…240€300 000AB = ?A6% / 12

A mortgage of €300 000 is repaid with equal monthly payments over 20 years at 6% per year, compounded monthly. How much is still owed just after the payment at the end of year 5? Find the outstanding balance B.

P = €300 0006% / 12N = 240k = 60
B = €
6.Hard
months01…72…300€150 000AB = ?A4.8% / 12

A mortgage of €150 000 is repaid with equal monthly payments over 25 years at 4.8% 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 = €150 0004.8% / 12N = 300k = 72
B = €

Answer key

  1. 1. PV = 33333 €
  2. 2. i = 8.261 %
  3. 3. PV = 35260 €
  4. 4. FV = 24922 €
  5. 5. B = 254699 €
  6. 6. B = 128398 €

Full step-by-step solutions: practise this topic on examproblems.com.