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 €500 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €500i = 4%n = 3

FV = €

2.Easy

You deposit €2 500 at 8% 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 = 8%

n = years

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 2% per year forever. The required return is 5% per year. Find the value PV of the property today.

C₁ = €20 000g = 2%r = 5%

PV = €

4.Medium

A property is expected to earn net rent of €5 000 next year. The rent is expected to grow by 2% per year forever. The required return is 6% per year. Find the value PV of the property today.

C₁ = €5 000g = 2%r = 6%

PV = €

5.Hard

You save €100 at the end of every month for 26 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1005.4% / 12N = 312

FV = €

6.Hard

You save €250 at the end of every month for 10 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2502.4% / 12N = 120

FV = €

Answer key

1. FV = 562.4 €
2. n = 15 years
3. PV = 666667 €
4. PV = 125000 €
5. FV = 67970 €
6. FV = 33868 €

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