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
years012n = ?€2 500€7 500

You deposit €2 500 at 6% 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 €7 500?

PV = €2 500FV = €7 500i = 6%
n = years
2.Easy
years01234567€4 000€7 080

An investment of €4 000 grows to €7 080 in 7 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €7 080n = 7
i = %
3.Medium
years012€3 000FV = ?

You invest €3 000 at a nominal rate of 4% per year, compounded monthly. Find the value FV of the investment after 2 years.

PV = €3 0004% / 12n = 2
FV = €
4.Medium
years0123…9PV = ?€20 000+3%+3%…r = 8%

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 3% per year forever. The required return is 8% per year. Find the value PV of the property today.

C1 = €20 000g = 3%r = 8%
PV = €
5.Hard
months0123…144€200€200€200FV = ?

You save €200 at the end of every month for 12 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2003.6% / 12N = 144
FV = €
6.Hard
months0123…48€15 000A?AAA

A loan of €15 000 is repaid with equal monthly payments over 4 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.

P = €15 0002.4% / 12N = 48
A = €

Answer key

  1. 1. n = 19 years
  2. 2. i = 8.499 %
  3. 3. FV = 3249 €
  4. 4. PV = 400000 €
  5. 5. FV = 35956 €
  6. 6. A = 328.1 €

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