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 €30 000?

PV = €10 000FV = €30 000i = 9%

n = years

2.Easy

You deposit €1 000 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 = €1 000i = 4%n = 3

FV = €

3.Medium

A property is expected to earn net rent of €20 000 next year. The rent is expected to grow by 4% per year forever. The required return is 7% per year. Find the value PV of the property today.

C₁ = €20 000g = 4%r = 7%

PV = €

4.Medium

An annuity pays €8 000 at the end of each year for 16 years. The interest rate is 5% per year. Find the present value PV of the annuity.

A = €8 000i = 5%n = 16

PV = €

5.Hard

You want €25 000 in 19 years. You save the same amount at the end of every month in an account paying 4.2% per year, compounded monthly. Find the monthly deposit A.

FV = €25 0004.2% / 12N = 228

A = €

6.Hard

You borrow €5 000 at 3.6% per year, compounded monthly, and repay €125 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 = €5 000A = €1253.6% / 12

N = payments

Answer key

1. n = 13 years
2. FV = 1125 €
3. PV = 666667 €
4. PV = 86702 €
5. A = 71.84 €
6. N = 43 payments

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