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 €4 000 at 5% interest per year, compounded annually (interest is added at the end of each year). After how many whole years n does the balance first reach at least €8 000?

PV = €4 000FV = €8 000i = 5%

n = years

2.Easy

You will receive €5 000 in 8 years. The interest rate is 8% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €5 000i = 8%n = 8

PV = €

3.Medium

A property is expected to earn net rent of €5 000 next year. The rent is expected to grow by 1% per year forever. The required return is 4% per year. Find the value PV of the property today.

C₁ = €5 000g = 1%r = 4%

PV = €

4.Medium

You invest €2 000 at a nominal rate of 4.8% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €2 0004.8% / 4n = 3

FV = €

5.Hard

You borrow €5 000 at 5.4% 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 = €1005.4% / 12

N = payments

6.Hard

A loan of €12 000 is repaid with equal monthly payments over 6 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €12 0004.2% / 12N = 72

A = €

Answer key

1. n = 15 years
2. PV = 2701 €
3. PV = 166667 €
4. FV = 2308 €
5. N = 57 payments
6. A = 188.8 €

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