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 €2 000 at 7% 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 €4 000?

PV = €2 000FV = €4 000i = 7%

n = years

2.Easy

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

You invest €8 000 at a nominal rate of 5% per year, compounded monthly. Find the value FV of the investment after 5 years.

PV = €8 0005% / 12n = 5

FV = €

4.Medium

A property is expected to earn net rent of €6 000 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 = €6 000g = 3%r = 8%

PV = €

5.Hard

You want €10 000 in 15 years. You save the same amount at the end of every month in an account paying 2.4% per year, compounded monthly. Find the monthly deposit A.

FV = €10 0002.4% / 12N = 180

A = €

6.Hard

You save €100 at the end of every month for 21 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1005.4% / 12N = 252

FV = €

Answer key

1. n = 11 years
2. PV = 125000 €
3. FV = 10267 €
4. PV = 120000 €
5. A = 46.21 €
6. FV = 46670 €

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