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 €1 000 at 3% 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 €3 000?

PV = €1 000FV = €3 000i = 3%

n = years

2.Easy

You deposit €4 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 11 years? Find the future value FV.

PV = €4 000i = 3.5%n = 11

FV = €

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 1% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €20 000g = 1%r = 7%

PV = €

4.Medium

You invest €5 000 at 4% per year with continuous compounding. Find the value FV after 9 years.

PV = €5 000r = 4%t = 9

FV = €

5.Hard

A loan of €15 000 is repaid with equal monthly payments over 3 years at 3.6% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €15 0003.6% / 12N = 36

I = €

6.Hard

A loan of €10 000 is repaid with equal monthly payments over 5 years at 4.8% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €10 0004.8% / 12N = 60

I = €

Answer key

1. n = 38 years
2. FV = 5840 €
3. PV = 333333 €
4. FV = 7167 €
5. I = 847 €
6. I = 1268 €

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