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 = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 6% interest per year. How much must be invested today? Find PV.

A = €1 000i = 6%
PV = €
2.Easy
years012345€4 000€5 110

An investment of €4 000 grows to €5 110 in 5 years with annual compounding. Find the annual interest rate i in percent.

PV = €4 000FV = €5 110n = 5
i = %
3.Medium
years0123…8PV = ?€20 000

You need €20 000 in 8 years. An account pays 6% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €20 0006% / 12n = 8
PV = €
4.Medium
years0123…9PV = ?€2 000+1.5%+1.5%…r = 7.5%

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 7.5% per year. Find the value PV of the property today.

C1 = €2 000g = 1.5%r = 7.5%
PV = €
5.Hard
months0123…36€20 000A?AAA

A loan of €20 000 is repaid with equal monthly payments over 3 years. The interest rate is 3.6% per year, compounded monthly. Find the monthly payment A.

P = €20 0003.6% / 12N = 36
A = €
6.Hard
months0123…360€150€150€150FV = ?

You save €150 at the end of every month for 30 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1503.6% / 12N = 360
FV = €

Answer key

  1. 1. PV = 16667 €
  2. 2. i = 5.02 %
  3. 3. PV = 12390 €
  4. 4. PV = 33333 €
  5. 5. A = 586.9 €
  6. 6. FV = 96996 €

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