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 6% 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 €2 000?

PV = €1 000FV = €2 000i = 6%

n = years

2.Easy

You deposit €4 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €4 000i = 4%n = 5

FV = €

3.Medium

You need €50 000 in 6 years. An account pays 3% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €50 0003% / 4n = 6

PV = €

4.Medium

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 1% per year forever. The required return is 4% per year. Find the value PV of the property today.

C₁ = €2 000g = 1%r = 4%

PV = €

5.Hard

You save €250 at the end of every month for 26 years. The account pays 4.2% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2504.2% / 12N = 312

FV = €

6.Hard

A mortgage of €150 000 is repaid with equal monthly payments over 30 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 3? Find the outstanding balance B.

P = €150 0003.6% / 12N = 360k = 36

B = €

Answer key

1. n = 12 years
2. FV = 4867 €
3. PV = 41792 €
4. PV = 66667 €
5. FV = 141039 €
6. B = 141195 €

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