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
years0123…9PV = ?€2 000€2 000€2 000…

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €2 000i = 2.5%
PV = €
2.Easy
years012n = ?€10 000€20 000

You deposit €10 000 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 €20 000?

PV = €10 000FV = €20 000i = 3%
n = years
3.Medium
years0123PV = ?€10 000

You need €10 000 in 3 years. An account pays 4% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €10 0004% / 12n = 3
PV = €
4.Medium
years0123…9€12 000FV = ?

You invest €12 000 at a nominal rate of 4% per year, compounded quarterly. Find the value FV of the investment after 9 years.

PV = €12 0004% / 4n = 9
FV = €
5.Hard
months0123…48€20 000AAAA2.4% / 12, I = ?

A loan of €20 000 is repaid with equal monthly payments over 4 years at 2.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €20 0002.4% / 12N = 48
I = €
6.Hard
months0123…48€8 000A?AAA

A loan of €8 000 is repaid with equal monthly payments over 4 years. The interest rate is 3% per year, compounded monthly. Find the monthly payment A.

P = €8 0003% / 12N = 48
A = €

Answer key

  1. 1. PV = 80000 €
  2. 2. n = 24 years
  3. 3. PV = 8871 €
  4. 4. FV = 17169 €
  5. 5. I = 995.3 €
  6. 6. A = 177.1 €

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