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
years0123…12€5 000€6 720

An investment of €5 000 grows to €6 720 in 12 years with annual compounding. Find the annual interest rate i in percent.

PV = €5 000FV = €6 720n = 12
i = %
2.Easy
years0123…9PV = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €1 000i = 2%
PV = €
3.Medium
years012€3 000FV = ?

You invest €3 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 2 years.

PV = €3 0005% / 12n = 2
FV = €
4.Medium
years012€20 000FV = ?

You invest €20 000 at a nominal rate of 4% per year, compounded quarterly. Find the value FV of the investment after 2 years.

PV = €20 0004% / 4n = 2
FV = €
5.Hard
months0123…N = ?€5 000€75€75€75€752.4% / 12

You borrow €5 000 at 2.4% per year, compounded monthly, and repay €75 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 = €5 000A = €752.4% / 12
N = payments
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 4.2% per year, compounded monthly. Find the monthly deposit A.

FV = €30 0004.2% / 12N = 72
A = €

Answer key

  1. 1. i = 2.494 %
  2. 2. PV = 50000 €
  3. 3. FV = 3315 €
  4. 4. FV = 21657 €
  5. 5. N = 72 payments
  6. 6. A = 367.1 €

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