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

A foundation wants to pay a prize of €12 000 at the end of every year, forever. The fund earns 5% interest per year. How much must be invested today? Find PV.

A = €12 000i = 5%

PV = €

2.Easy

You will receive €2 000 in 7 years. The interest rate is 8% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €2 000i = 8%n = 7

PV = €

3.Medium

An annuity pays €5 000 at the end of each year for 4 years. The interest rate is 10% per year. Find the present value PV of the annuity.

A = €5 000i = 10%n = 4

PV = €

4.Medium

You need €20 000 in 8 years. An account pays 5% per year, compounded monthly. How much must you deposit today? Find the present value PV.

FV = €20 0005% / 12n = 8

PV = €

5.Hard

You save €50 at the end of every month for 25 years. The account pays 6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €506% / 12N = 300

FV = €

6.Hard

You save €200 at the end of every month for 26 years. The account pays 4.8% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €2004.8% / 12N = 312

FV = €

Answer key

1. PV = 240000 €
2. PV = 1167 €
3. PV = 15849 €
4. PV = 13418 €
5. FV = 34650 €
6. FV = 123735 €

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