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
years0123…9PV = ?€2 000€2 000€2 000…

A foundation wants to pay a prize of €2 000 at the end of every year, forever. The fund earns 2.5% interest per year. How much must be invested today? Find PV.

A = €2 000i = 2.5%
PV = €
2.Easy
years0123€4 000FV = ?

You deposit €4 000 in a savings account that pays 7% interest per year, compounded annually. How much is in the account after 3 years? Find the future value FV.

PV = €4 000i = 7%n = 3
FV = €
3.Medium
years0123€2 000FV = ?

You invest €2 000 at a nominal rate of 3% per year, compounded quarterly. Find the value FV of the investment after 3 years.

PV = €2 0003% / 4n = 3
FV = €
4.Medium
years0123…9PV = ?€2 000+1.5%+1.5%…r = 5.5%

A property is expected to earn net rent of €2 000 next year. The rent is expected to grow by 1.5% per year forever. The required return is 5.5% per year. Find the value PV of the property today.

C1 = €2 000g = 1.5%r = 5.5%
PV = €
5.Hard
months0123…120A?AA€10 000

You want €10 000 in 10 years. You save the same amount at the end of every month in an account paying 4.2% per year, compounded monthly. Find the monthly deposit A.

FV = €10 0004.2% / 12N = 120
A = €
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 2.4% per year, compounded monthly. Find the monthly payment A.

P = €20 0002.4% / 12N = 72
A = €

Answer key

  1. 1. PV = 80000 €
  2. 2. FV = 4900 €
  3. 3. FV = 2188 €
  4. 4. PV = 50000 €
  5. 5. A = 67.2 €
  6. 6. A = 298.5 €

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