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 = ?€2 500€7 500

You deposit €2 500 at 7% 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 €7 500?

PV = €2 500FV = €7 500i = 7%
n = years
2.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 5% interest per year. How much must be invested today? Find PV.

A = €1 000i = 5%
PV = €
3.Medium
years01234567PV = ?€50 000

You need €50 000 in 7 years. An account pays 3.6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €50 0003.6% / 12n = 7
PV = €
4.Medium
years0123…10PV = ?€5 000

You need €5 000 in 10 years. An account pays 5% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €5 0005% / 12n = 10
PV = €
5.Hard
months0123…276€200€200€200FV = ?

You save €200 at the end of every month for 23 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2005.4% / 12N = 276
FV = €
6.Hard
months0123…360€200 000A?AAA

A loan of €200 000 is repaid with equal monthly payments over 30 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €200 0004.2% / 12N = 360
A = €

Answer key

  1. 1. n = 17 years
  2. 2. PV = 20000 €
  3. 3. PV = 38877 €
  4. 4. PV = 3036 €
  5. 5. FV = 109018 €
  6. 6. A = 978 €

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