Future Value of Lump Sum Calculator is a tool that calculates the maturity amount of a present value lump sum investment, or a one-time investment, after a defined number of years
- Future Value Of Lump Sum:
- What does Lump Sum mean?
- It refers to maturity amount of a present value lump sum investment, or a one-time investment, after a specified number of years.
FV = PV (1 + rm) ^ mt
- r = R/100 (yearly interest rate)
- t = number of years
- m = the compounding intervals per period where a period is an interval of time.
A person puts $10,000 into an investment account with 6.25% per year compounded monthly. The value of your investment in 2 years or, the future value of your account, according to the formula equals;
- Investment (PV) = $10,000
- Interest Rate (R) = 6.25%
- Number of Periods (in years) (t) = 2
- The compounding per Period (per year) or m = 12
- FV = $10,000 (1 + 0.062512) ^ 12 × 2
- = $11,327.81
- Jun 10, 2018
- Tool Launched