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
years012n = ?€2 500€7 500

You deposit €2 500 at 7% 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 €7 500?

PV = €2 500FV = €7 500i = 7%
n = years
2.Easy
years01234€1 000€1 230

An investment of €1 000 grows to €1 230 in 4 years with annual compounding. Find the annual interest rate i in percent.

PV = €1 000FV = €1 230n = 4
i = %
3.Medium
years01234567PV = ?€25 000

You need €25 000 in 7 years. An account pays 3% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €25 0003% / 12n = 7
PV = €
4.Medium
years0123…9PV = ?€6 000+2.5%+2.5%…r = 7.5%

A property is expected to earn net rent of €6 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 7.5% per year. Find the value PV of the property today.

C1 = €6 000g = 2.5%r = 7.5%
PV = €
5.Hard
months0123…72€12 000A?AAA

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 = €
6.Hard
months0123…72A?AA€30 000

You want €30 000 in 6 years. You save the same amount at the end of every month in an account paying 3% per year, compounded monthly. Find the monthly deposit A.

FV = €30 0003% / 12N = 72
A = €

Answer key

  1. 1. n = 17 years
  2. 2. i = 5.312 %
  3. 3. PV = 20270 €
  4. 4. PV = 120000 €
  5. 5. A = 188.8 €
  6. 6. A = 380.8 €

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