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
years0123…9PV = ?€5 000€5 000€5 000…

A foundation wants to pay a prize of €5 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €5 000i = 5%
PV = €
2.Easy
years012n = ?€2 500€5 000

You deposit €2 500 at 3% 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 €5 000?

PV = €2 500FV = €5 000i = 3%
n = years
3.Medium
years0123€20 000FV = ?

You invest €20 000 at a nominal rate of 3.6% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €20 0003.6% / 4n = 3
FV = €
4.Medium
years0123…13€1 000FV = ?

You invest €1 000 at 6% per year with continuous compounding. Find the value FV after 13 years.

PV = €1 000r = 6%t = 13
FV = €
5.Hard
months0123…180A?AA€25 000

You want €25 000 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 = €25 0002.4% / 12N = 180
A = €
6.Hard
years0123…15€1 000€1 000€1 000FV = ?

You deposit €1 000 at the start of every year for 15 years, the first deposit today. The account pays 7% per year. How much is in the account at the end of year 15? Find FV.

A = €1 000i = 7%n = 15
FV = €

Answer key

  1. 1. PV = 100000 €
  2. 2. n = 24 years
  3. 3. FV = 22270 €
  4. 4. FV = 2181 €
  5. 5. A = 115.5 €
  6. 6. FV = 26888 €

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