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

An investment of €4 000 grows to €4 870 in 5 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €4 870n = 5

i = %

2.Easy

You will receive €10 000 in 8 years. The interest rate is 5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €10 000i = 5%n = 8

PV = €

3.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 4.5% per year. Find the value PV of the property today.

C₁ = €10 000g = 1.5%r = 4.5%

PV = €

4.Medium

An annuity pays €3 000 at the end of each year for 4 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €3 000i = 6%n = 4

PV = €

5.Hard

A loan of €20 000 is repaid with equal monthly payments over 3 years at 5.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0005.4% / 12N = 36

I = €

6.Hard

A loan of €30 000 is repaid with equal monthly payments over 3 years at 7.2% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €30 0007.2% / 12N = 36

I = €

Answer key

1. i = 4.014 %
2. PV = 6768 €
3. PV = 333333 €
4. PV = 10395 €
5. I = 1709 €
6. I = 3446 €

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