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 €5 740 in 5 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €5 740n = 5

i = %

2.Easy

You will receive €20 000 in 14 years. The interest rate is 4% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €20 000i = 4%n = 14

PV = €

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 2% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €20 000g = 2%r = 7%

PV = €

4.Medium

A credit card charges a nominal interest rate of 17.5% per year, compounded daily. Find the effective annual rate EAR in percent.

r = 17.5%m = 365

EAR = %

5.Hard

You deposit €3 000 at the start of every year for 23 years, the first deposit today. The account pays 6% per year. How much is in the account at the end of year 23? Find FV.

A = €3 000i = 6%n = 23

FV = €

6.Hard

You deposit €3 000 at the start of every year for 30 years, the first deposit today. The account pays 3% per year. How much is in the account at the end of year 30? Find FV.

A = €3 000i = 3%n = 30

FV = €

Answer key

1. i = 7.491 %
2. PV = 11550 €
3. PV = 400000 €
4. EAR = 19.12 %
5. FV = 149447 €
6. FV = 147008 €

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