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 €10 000 at 9% 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 €15 000?

PV = €10 000FV = €15 000i = 9%

n = years

2.Easy

You deposit €2 000 in a savings account that pays 2.5% interest per year, compounded annually. How much is in the account after 12 years? Find the future value FV.

PV = €2 000i = 2.5%n = 12

FV = €

3.Medium

You invest €20 000 at a nominal rate of 2% per year, compounded quarterly. Find the value FV of the investment after 7 years.

PV = €20 0002% / 4n = 7

FV = €

4.Medium

You invest €20 000 at a nominal rate of 4% per year, compounded monthly. Find the value FV of the investment after 5 years.

PV = €20 0004% / 12n = 5

FV = €

5.Hard

A loan of €200 000 is repaid with equal monthly payments over 20 years. The interest rate is 5.4% per year, compounded monthly. Find the monthly payment A.

P = €200 0005.4% / 12N = 240

A = €

6.Hard

A mortgage of €250 000 is repaid with equal monthly payments over 30 years at 3% per year, compounded monthly. How much is still owed just after the payment at the end of year 15? Find the outstanding balance B.

P = €250 0003% / 12N = 360k = 180

B = €

Answer key

1. n = 5 years
2. FV = 2690 €
3. FV = 22997 €
4. FV = 24420 €
5. A = 1365 €
6. B = 152626 €

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