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 €7 500 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €7 500i = 6%n = 5

FV = €

2.Easy

You deposit €2 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €2 000i = 4.5%n = 3

FV = €

3.Medium

You invest €5 000 at a nominal rate of 3% per year, compounded monthly. Find the value FV of the investment after 9 years.

PV = €5 0003% / 12n = 9

FV = €

4.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 6.5% per year. Find the value PV of the property today.

C₁ = €12 000g = 2.5%r = 6.5%

PV = €

5.Hard

A mortgage of €200 000 is repaid with equal monthly payments over 20 years at 4.8% per year, compounded monthly. How much is still owed just after the payment at the end of year 13? Find the outstanding balance B.

P = €200 0004.8% / 12N = 240k = 156

B = €

6.Hard

A loan of €20 000 is repaid with equal monthly payments over 5 years at 4.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0004.2% / 12N = 60

I = €

Answer key

1. FV = 10037 €
2. FV = 2282 €
3. FV = 6548 €
4. PV = 300000 €
5. B = 92443 €
6. I = 2208 €

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