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 2% interest per year. How much must be invested today? Find PV.

A = €5 000i = 2%
PV = €
2.Easy
years01234567€500FV = ?

You deposit €500 in a savings account that pays 1.5% interest per year, compounded annually. How much is in the account after 7 years? Find the future value FV.

PV = €500i = 1.5%n = 7
FV = €
3.Medium
years0123…9PV = ?€10 000+3%+3%…r = 8%

A property is expected to earn net rent of €10 000 next year. The rent is expected to grow by 3% per year forever. The required return is 8% per year. Find the value PV of the property today.

C1 = €10 000g = 3%r = 8%
PV = €
4.Medium
years0123…8€1 000FV = ?

You invest €1 000 at a nominal rate of 5% per year, compounded quarterly. Find the value FV of the investment after 8 years.

PV = €1 0005% / 4n = 8
FV = €
5.Hard
months0123…180€150 000AAAA5.4% / 12, I = ?

A loan of €150 000 is repaid with equal monthly payments over 15 years at 5.4% per year, compounded monthly. How much interest I is paid in total over the life of the loan?

P = €150 0005.4% / 12N = 180
I = €
6.Hard
months0123…192€50€50€50FV = ?

You save €50 at the end of every month for 16 years. The account pays 5.4% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €505.4% / 12N = 192
FV = €

Answer key

  1. 1. PV = 250000 €
  2. 2. FV = 554.9 €
  3. 3. PV = 200000 €
  4. 4. FV = 1488 €
  5. 5. I = 69182 €
  6. 6. FV = 15200 €

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