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
years012n = ?€5 000€7 500

You deposit €5 000 at 3% 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 €7 500?

PV = €5 000FV = €7 500i = 3%
n = years
2.Easy
years0123…12€7 500FV = ?

You deposit €7 500 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €7 500i = 4%n = 12
FV = €
3.Medium
years01234567€1 000FV = ?

You invest €1 000 at a nominal rate of 3% per year, compounded quarterly. Find the value FV of the investment after 7 years.

PV = €1 0003% / 4n = 7
FV = €
4.Medium
years0123…16€2 000FV = ?

You invest €2 000 at 5% per year with continuous compounding. Find the value FV after 16 years.

PV = €2 000r = 5%t = 16
FV = €
5.Hard
months01…36…240€150 000AB = ?A4.2% / 12

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
months0123…48€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 4 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €15 0002.4% / 12N = 48
A = €

Answer key

  1. 1. n = 14 years
  2. 2. FV = 12008 €
  3. 3. FV = 1233 €
  4. 4. FV = 4451 €
  5. 5. B = 134687 €
  6. 6. A = 328.1 €

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