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 = ?€5 000€5 000€5 000…

A foundation wants to pay a prize of €5 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €5 000i = 5%
PV = €
2.Easy
years0123…9PV = ?€2 500€2 500€2 500…

A foundation wants to pay a prize of €2 500 at the end of every year, forever. The fund earns 2% interest per year. How much must be invested today? Find PV.

A = €2 500i = 2%
PV = €
3.Medium
years0123456PV = ?€50 000

You need €50 000 in 6 years. An account pays 4.8% per year, compounded quarterly. How much must you deposit today? Find the present value PV.

FV = €50 0004.8% / 4n = 6
PV = €
4.Medium
years0123…10PV = ?€3 000€3 000€3 000€3 000

An annuity pays €3 000 at the end of each year for 10 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €3 000i = 6%n = 10
PV = €
5.Hard
months0123…324€50€50€50FV = ?

You save €50 at the end of every month for 27 years. The account pays 3% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €503% / 12N = 324
FV = €
6.Hard
months0123…360€250 000A?AAA

A loan of €250 000 is repaid with equal monthly payments over 30 years. The interest rate is 4.2% per year, compounded monthly. Find the monthly payment A.

P = €250 0004.2% / 12N = 360
A = €

Answer key

  1. 1. PV = 100000 €
  2. 2. PV = 125000 €
  3. 3. PV = 37552 €
  4. 4. PV = 22080 €
  5. 5. FV = 24913 €
  6. 6. A = 1223 €

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