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 will receive €10 000 in 3 years. The interest rate is 3.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €10 000i = 3.5%n = 3

PV = €

2.Easy

You deposit €1 500 in a savings account that pays 3.5% interest per year, compounded annually. How much is in the account after 10 years? Find the future value FV.

PV = €1 500i = 3.5%n = 10

FV = €

3.Medium

A property is expected to earn net rent of €2 000 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 = €2 000g = 1.5%r = 4.5%

PV = €

4.Medium

An annuity pays €3 000 at the end of each year for 18 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €3 000i = 6%n = 18

PV = €

5.Hard

A mortgage of €300 000 is repaid with equal monthly payments over 30 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 20? Find the outstanding balance B.

P = €300 0003.6% / 12N = 360k = 240

B = €

6.Hard

A loan of €8 000 is repaid with equal monthly payments over 4 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €8 0003.6% / 12N = 48

A = €

Answer key

1. PV = 9019 €
2. FV = 2116 €
3. PV = 66667 €
4. PV = 32483 €
5. B = 137279 €
6. A = 179.2 €

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