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 = ?€1 000€1 000€1 000…

A foundation wants to pay a prize of €1 000 at the end of every year, forever. The fund earns 3% interest per year. How much must be invested today? Find PV.

A = €1 000i = 3%
PV = €
2.Easy
years0123…8€10 000€14 770

An investment of €10 000 grows to €14 770 in 8 years with annual compounding. Find the annual interest rate i in percent.

PV = €10 000FV = €14 770n = 8
i = %
3.Medium
years0123…9PV = ?€5 000+1.5%+1.5%…r = 5.5%

A property is expected to earn net rent of €5 000 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 = €5 000g = 1.5%r = 5.5%
PV = €
4.Medium
years0123…18€1 000FV = ?

You invest €1 000 at 8% per year with continuous compounding. Find the value FV after 18 years.

PV = €1 000r = 8%t = 18
FV = €
5.Hard
months0123…168€100€100€100FV = ?

You save €100 at the end of every month for 14 years. The account pays 3.6% per year, compounded monthly. How much have you saved at the end? Find FV.

A = €1003.6% / 12N = 168
FV = €
6.Hard
months01…180…240€300 000AB = ?A5.4% / 12

A mortgage of €300 000 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 15? Find the outstanding balance B.

P = €300 0005.4% / 12N = 240k = 180
B = €

Answer key

  1. 1. PV = 33333 €
  2. 2. i = 4.996 %
  3. 3. PV = 125000 €
  4. 4. FV = 4221 €
  5. 5. FV = 21803 €
  6. 6. B = 107413 €

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