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 €500 in a savings account that pays 5% interest per year, compounded annually. How much is in the account after 9 years? Find the future value FV.

PV = €500i = 5%n = 9

FV = €

2.Easy

An investment of €1 000 grows to €1 310 in 12 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €1 310n = 12

i = %

3.Medium

You need €40 000 in 5 years. An account pays 6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €40 0006% / 4n = 5

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 5.5% per year. Find the value PV of the property today.

C₁ = €2 000g = 2.5%r = 5.5%

PV = €

5.Hard

You borrow €10 000 at 4.8% per year, compounded monthly, and repay €450 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 = €10 000A = €4504.8% / 12

N = payments

6.Hard

A loan of €250 000 is repaid with equal monthly payments over 25 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €250 0002.4% / 12N = 300

A = €

Answer key

1. FV = 775.7 €
2. i = 2.276 %
3. PV = 29699 €
4. PV = 66667 €
5. N = 24 payments
6. A = 1109 €

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