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 = ?€4 000€12 000

You deposit €4 000 at 2% 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 €12 000?

PV = €4 000FV = €12 000i = 2%
n = years
2.Easy
years012€4 000FV = ?

You deposit €4 000 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 2 years? Find the future value FV.

PV = €4 000i = 1.5%n = 2
FV = €
3.Medium
years0123…9PV = ?€2 000+4%+4%…r = 9%

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 4% per year forever. The required return is 9% per year. Find the value PV of the property today.

C1 = €2 000g = 4%r = 9%
PV = €
4.Medium
years0123…9€3 000FV = ?

You invest €3 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 9 years.

PV = €3 0002% / 12n = 9
FV = €
5.Hard
months0123…252€50€50€50FV = ?

You save €50 at the end of every month for 21 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €506% / 12N = 252
FV = €
6.Hard
months0123…48€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 4 years. The interest rate is 3% per year, compounded monthly. Find the monthly payment A.

P = €8 0003% / 12N = 48
A = €

Answer key

  1. 1. n = 56 years
  2. 2. FV = 4121 €
  3. 3. PV = 40000 €
  4. 4. FV = 3591 €
  5. 5. FV = 25144 €
  6. 6. A = 177.1 €

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