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
years01234567€2 000FV = ?

You deposit €2 000 in a savings account that pays 4% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €2 000i = 4%n = 7
FV = €
2.Easy
years012345PV = ?€15 000

You will receive €15 000 in 5 years. The interest rate is 7% per year, compounded annually. What is this amount worth today? Find the present value PV.

FV = €15 000i = 7%n = 5
PV = €
3.Medium
years0123…9PV = ?€5 000+2%+2%…r = 5%

A property is expected to earn net rent of €5 000 next year. The rent is expected to grow by 2% per year forever. The required return is 5% per year. Find the value PV of the property today.

C1 = €5 000g = 2%r = 5%
PV = €
4.Medium
years0123…13PV = ?€3 000€3 000€3 000€3 000

An annuity pays €3 000 at the end of each year for 13 years. The interest rate is 6% per year. Find the present value PV of the annuity.

A = €3 000i = 6%n = 13
PV = €
5.Hard
months0123…N = ?€20 000€300€300€300€3006% / 12

You borrow €20 000 at 6% per year, compounded monthly, and repay €300 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 = €20 000A = €3006% / 12
N = payments
6.Hard
months01…72…360€150 000AB = ?A3.6% / 12

A mortgage of €150 000 is repaid with equal monthly payments over 30 years at 3.6% per year, compounded monthly. How much is still owed just after the payment at the end of year 6? Find the outstanding balance B.

P = €150 0003.6% / 12N = 360k = 72
B = €

Answer key

  1. 1. FV = 2632 €
  2. 2. PV = 10695 €
  3. 3. PV = 166667 €
  4. 4. PV = 26558 €
  5. 5. N = 82 payments
  6. 6. B = 131388 €

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