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

An investment of €5 000 grows to €11 660 in 11 years with annual compounding. Find the annual interest rate i in percent.

PV = €5 000FV = €11 660n = 11

i = %

2.Easy

An investment of €2 000 grows to €2 550 in 11 years with annual compounding. Find the annual interest rate i in percent.

PV = €2 000FV = €2 550n = 11

i = %

3.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 8.5% per year. Find the value PV of the property today.

C₁ = €10 000g = 2.5%r = 8.5%

PV = €

4.Medium

You need €10 000 in 7 years. An account pays 6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €10 0006% / 4n = 7

PV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 20 years at 7.2% 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 0007.2% / 12N = 240k = 72

B = €

6.Hard

You save €50 at the end of every month for 15 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €504.2% / 12N = 180

FV = €

Answer key

1. i = 8.002 %
2. i = 2.233 %
3. PV = 166667 €
4. PV = 6591 €
5. B = 207975 €
6. FV = 12508 €

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