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 will receive €5 000 in 10 years. The interest rate is 4.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €5 000i = 4.5%n = 10

PV = €

2.Easy

You deposit €2 000 at 5% 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 €5 000?

PV = €2 000FV = €5 000i = 5%

n = years

3.Medium

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 2% per year forever. The required return is 8% per year. Find the value PV of the property today.

C₁ = €2 000g = 2%r = 8%

PV = €

4.Medium

You invest €10 000 at 5% per year with continuous compounding. Find the value FV after 10 years.

PV = €10 000r = 5%t = 10

FV = €

5.Hard

A mortgage of €150 000 is repaid with equal monthly payments over 20 years at 4.2% 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 0004.2% / 12N = 240k = 36

B = €

6.Hard

You want €75 000 in 13 years. You save the same amount at the end of every month in an account paying 5.4% per year, compounded monthly. Find the monthly deposit A.

FV = €75 0005.4% / 12N = 156

A = €

Answer key

1. PV = 3220 €
2. n = 19 years
3. PV = 33333 €
4. FV = 16487 €
5. B = 134687 €
6. A = 332.6 €

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