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 €2 500 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €2 500i = 4.5%n = 10

FV = €

2.Easy

You will receive €25 000 in 11 years. The interest rate is 2% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €25 000i = 2%n = 11

PV = €

3.Medium

You need €10 000 in 3 years. An account pays 4% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €10 0004% / 12n = 3

PV = €

4.Medium

A property is expected to earn net rent of €2 000 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 = €2 000g = 2.5%r = 8.5%

PV = €

5.Hard

A loan of €150 000 is repaid with equal monthly payments over 25 years at 7.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €150 0007.2% / 12N = 300

I = €

6.Hard

You borrow €8 000 at 7.2% per year, compounded monthly, and repay €200 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 = €8 000A = €2007.2% / 12

N = payments

Answer key

1. FV = 3882 €
2. PV = 20107 €
3. PV = 8871 €
4. PV = 33333 €
5. I = 173815 €
6. N = 46 payments

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