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 €10 000 at 2% 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 €25 000?

PV = €10 000FV = €25 000i = 2%

n = years

2.Easy

You deposit €4 000 in a savings account that pays 4.5% interest per year, compounded annually. How much is in the account after 8 years? Find the future value FV.

PV = €4 000i = 4.5%n = 8

FV = €

3.Medium

You invest €10 000 at 3% per year with continuous compounding. Find the value FV after 20 years.

PV = €10 000r = 3%t = 20

FV = €

4.Medium

An annuity pays €5 000 at the end of each year for 18 years. The interest rate is 5% per year. Find the present value PV of the annuity.

A = €5 000i = 5%n = 18

PV = €

5.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 30 years at 4.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 25? Find the outstanding balance B.

P = €250 0004.2% / 12N = 360k = 300

B = €

6.Hard

You save €200 at the end of every month for 15 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2002.4% / 12N = 180

FV = €

Answer key

1. n = 47 years
2. FV = 5688 €
3. FV = 18221 €
4. PV = 58448 €
5. B = 66059 €
6. FV = 43281 €

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