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 €10 000 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €10 000i = 3.5%n = 10

FV = €

2.Easy

A foundation wants to pay a prize of €10 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €10 000i = 2.5%

PV = €

3.Medium

A property is expected to earn net rent of €12 000 next year. The rent is expected to grow by 3% per year forever. The required return is 8% per year. Find the value PV of the property today.

C₁ = €12 000g = 3%r = 8%

PV = €

4.Medium

You need €5 000 in 9 years. An account pays 3.6% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €5 0003.6% / 4n = 9

PV = €

5.Hard

You save €50 at the end of every month for 13 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €505.4% / 12N = 156

FV = €

6.Hard

A loan of €200 000 is repaid with equal monthly payments over 20 years at 6% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €200 0006% / 12N = 240

I = €

Answer key

1. FV = 14106 €
2. PV = 400000 €
3. PV = 240000 €
4. PV = 3621 €
5. FV = 11273 €
6. I = 143887 €

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