Future Value of Lump Sum Calculator

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.

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