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 €4 000 in a savings account that pays 2.5% interest per year, compounded annually. How much is in the account after 6 years? Find the future value FV.

PV = €4 000i = 2.5%n = 6

FV = €

2.Easy

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 4% interest per year. How much must be invested today? Find PV.

A = €2 000i = 4%

PV = €

3.Medium

You need €15 000 in 5 years. An account pays 4% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €15 0004% / 12n = 5

PV = €

4.Medium

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 2.5% per year forever. The required return is 7.5% per year. Find the value PV of the property today.

C₁ = €10 000g = 2.5%r = 7.5%

PV = €

5.Hard

You save €300 at the end of every month for 14 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3005.4% / 12N = 168

FV = €

6.Hard

You save €300 at the end of every month for 23 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €3005.4% / 12N = 276

FV = €

Answer key

1. FV = 4639 €
2. PV = 50000 €
3. PV = 12285 €
4. PV = 200000 €
5. FV = 75075 €
6. FV = 163527 €

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