Jun 10, 2018 0 Comments

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

- Jun 10, 2018
- Tool Launched

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