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 €8 000 grows to €8 810 in 3 years with annual compounding. Find the annual interest rate i in percent.

PV = €8 000FV = €8 810n = 3

i = %

2.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €2 000i = 6%

PV = €

3.Medium

An annuity pays €2 000 at the end of each year for 15 years. The interest rate is 5% per year. Find the present value PV of the annuity.

A = €2 000i = 5%n = 15

PV = €

4.Medium

You invest €12 000 at a nominal rate of 4.8% per year, compounded monthly. Find the value FV of the investment after 6 years.

PV = €12 0004.8% / 12n = 6

FV = €

5.Hard

A mortgage of €200 000 is repaid with equal monthly payments over 25 years at 4.8% per year, compounded monthly. How much is still owed just after the payment at the end of year 4? Find the outstanding balance B.

P = €200 0004.8% / 12N = 300k = 48

B = €

6.Hard

You borrow €15 000 at 4.2% per year, compounded monthly, and repay €350 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 = €15 000A = €3504.2% / 12

N = payments

Answer key

1. i = 3.267 %
2. PV = 33333 €
3. PV = 20759 €
4. FV = 15996 €
5. B = 181731 €
6. N = 47 payments

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