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

You deposit €2 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 4 years? Find the future value FV.

PV = €2 000i = 4%n = 4

FV = €

2.Easy

You deposit €500 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €500i = 7%n = 8

FV = €

3.Medium

An annuity pays €1 500 at the end of each year for 16 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €1 500i = 6%n = 16

PV = €

4.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 1% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €20 000g = 1%r = 7%

PV = €

5.Hard

A loan of €15 000 is repaid with equal monthly payments over 3 years. The interest rate is 5.4% per year, compounded monthly. Find the monthly payment A.

P = €15 0005.4% / 12N = 36

A = €

6.Hard

You borrow €5 000 at 3% per year, compounded monthly, and repay €100 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €5 000A = €1003% / 12

N = payments

Answer key

1. FV = 2340 €
2. FV = 859.1 €
3. PV = 15159 €
4. PV = 333333 €
5. A = 452.3 €
6. N = 54 payments

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