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 = ?€5 000€12 500

You deposit €5 000 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 €12 500?

PV = €5 000FV = €12 500i = 7%
n = years
2.Easy
years0123…9PV = ?€12 000€12 000€12 000…

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €12 000i = 2.5%
PV = €
3.Medium
years0123…18€2 000FV = ?

You invest €2 000 at 7% per year with continuous compounding. Find the value FV after 18 years.

PV = €2 000r = 7%t = 18
FV = €
4.Medium
years01234€12 000FV = ?

You invest €12 000 at a nominal rate of 4% per year, compounded quarterly. Find the value FV of the investment after 4 years.

PV = €12 0004% / 4n = 4
FV = €
5.Hard
months0123…N = ?€20 000€875€875€875€8754.2% / 12

You borrow €20 000 at 4.2% per year, compounded monthly, and repay €875 at the end of every month. How many months does it take until the loan is repaid (the last payment may be smaller)? Give the number of payments N.

P = €20 000A = €8754.2% / 12
N = payments
6.Hard
months0123…60€20 000A?AAA

A loan of €20 000 is repaid with equal monthly payments over 5 years. The interest rate is 6% per year, compounded monthly. Find the monthly payment A.

P = €20 0006% / 12N = 60
A = €

Answer key

  1. 1. n = 14 years
  2. 2. PV = 480000 €
  3. 3. FV = 7051 €
  4. 4. FV = 14071 €
  5. 5. N = 24 payments
  6. 6. A = 386.7 €

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