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.

New worksheetPractise online with hints

For teachers: free to print, copy and use in class. Every new worksheet has new values and its own answer key. A link to ExamProblems on your course page is appreciated.

Name: ____________________   Date: ____________

1.Easy
years012n = ?€5 000€15 000

You deposit €5 000 at 5% 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 = €5 000FV = €15 000i = 5%
n = years
2.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 2% interest per year. How much must be invested today? Find PV.

A = €5 000i = 2%
PV = €
3.Medium
years0123…8€3 000FV = ?

You invest €3 000 at a nominal rate of 4.8% per year, compounded monthly. Find the value FV of the investment after 8 years.

PV = €3 0004.8% / 12n = 8
FV = €
4.Medium
years0123…8€2 000FV = ?

You invest €2 000 at a nominal rate of 2% per year, compounded monthly. Find the value FV of the investment after 8 years.

PV = €2 0002% / 12n = 8
FV = €
5.Hard
months01…36…240€150 000AB = ?A5.4% / 12

A mortgage of €150 000 is repaid with equal monthly payments over 20 years at 5.4% per year, compounded monthly. How much is still owed just after the payment at the end of year 3? Find the outstanding balance B.

P = €150 0005.4% / 12N = 240k = 36
B = €
6.Hard
months0123…72€20 000A?AAA

A loan of €20 000 is repaid with equal monthly payments over 6 years. The interest rate is 3% per year, compounded monthly. Find the monthly payment A.

P = €20 0003% / 12N = 72
A = €

Answer key

  1. 1. n = 23 years
  2. 2. PV = 250000 €
  3. 3. FV = 4401 €
  4. 4. FV = 2347 €
  5. 5. B = 136418 €
  6. 6. A = 303.9 €

Full step-by-step solutions: practise this topic on examproblems.com.