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
years0123PV = ?€50 000

You will receive €50 000 in 3 years. The interest rate is 2.5% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €50 000i = 2.5%n = 3
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 3% interest per year. How much must be invested today? Find PV.

A = €2 500i = 3%
PV = €
3.Medium
years0123…20€10 000FV = ?

You invest €10 000 at 3% per year with continuous compounding. Find the value FV after 20 years.

PV = €10 000r = 3%t = 20
FV = €
4.Medium
years0123…8€2 000FV = ?

You invest €2 000 at 7% per year with continuous compounding. Find the value FV after 8 years.

PV = €2 000r = 7%t = 8
FV = €
5.Hard
months01…240…360€200 000AB = ?A7.2% / 12

A mortgage of €200 000 is repaid with equal monthly payments over 30 years at 7.2% per year, compounded monthly. How much is still owed just after the payment at the end of year 20? Find the outstanding balance B.

P = €200 0007.2% / 12N = 360k = 240
B = €
6.Hard
months0123…144€100€100€100FV = ?

You save €100 at the end of every month for 12 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1005.4% / 12N = 144
FV = €

Answer key

  1. 1. PV = 46430 €
  2. 2. PV = 83333 €
  3. 3. FV = 18221 €
  4. 4. FV = 3501 €
  5. 5. B = 115892 €
  6. 6. FV = 20199 €

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