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 €1 500 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €1 500i = 7%n = 10

FV = €

2.Easy

You will receive €2 000 in 14 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €2 000i = 2.5%n = 14

PV = €

3.Medium

You invest €3 000 at a nominal rate of 3.6% per year, compounded quarterly. Find the value FV of the investment after 9 years.

PV = €3 0003.6% / 4n = 9

FV = €

4.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 3.5% per year. Find the value PV of the property today.

C₁ = €12 000g = 1.5%r = 3.5%

PV = €

5.Hard

You deposit €1 000 at the start of every year for 25 years, the first deposit today. The account pays 8% per year. How much is in the account at the end of year 25? Find FV.

A = €1 000i = 8%n = 25

FV = €

6.Hard

You save €200 at the end of every month for 20 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2004.2% / 12N = 240

FV = €

Answer key

1. FV = 2951 €
2. PV = 1415 €
3. FV = 4142 €
4. PV = 600000 €
5. FV = 78954 €
6. FV = 75027 €

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