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.

New worksheet Practise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________ Date: ____________

1.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 8% interest per year. How much must be invested today? Find PV.

A = €2 000i = 8%

PV = €

2.Easy

You deposit €2 500 in a savings account that pays 6% interest per year, compounded annually. How much is in the account after 5 years? Find the future value FV.

PV = €2 500i = 6%n = 5

FV = €

3.Medium

You need €20 000 in 4 years. An account pays 5% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €20 0005% / 12n = 4

PV = €

4.Medium

An annuity pays €1 500 at the end of each year for 18 years. The interest rate is 5% per year. Find the present value PV of the annuity.

A = €1 500i = 5%n = 18

PV = €

5.Hard

A mortgage of €200 000 is repaid with equal monthly payments over 20 years at 7.2% 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 = €200 0007.2% / 12N = 240k = 36

B = €

6.Hard

A loan of €30 000 is repaid with equal monthly payments over 6 years at 4.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €30 0004.2% / 12N = 72

I = €

Answer key

1. PV = 25000 €
2. FV = 3346 €
3. PV = 16381 €
4. PV = 17534 €
5. B = 184993 €
6. I = 3991 €

Full step-by-step solutions: practise this topic on examproblems.com.