Future Value of Lump Sum Calculator

Updated: Jun 10, 2018

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:
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Background Information

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.
Formula

FV = PV (1 + rm) ^ mt

Where:-

  • r = R/100 (yearly interest rate)
  • t = number of years
  • m = the compounding intervals per period where a period is an interval of time.
Example

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

 

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History

Jun 10, 2018
Tool Launched