Present Value of Lump Sum Calculator is a tool that helps calculate the present value of lump sum based on the fixed interest rate per period

- Present 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
PV = FV / (1 + r) ^ t

Where:-

- PV = present value of lump sum
- FV = future value of lump sum
- r = interest rate per period
- t = number of compounding periods

- Example
A person wants to purchase a house in two years. He expects that he would need to have $20,000 at that time to use as a down payment. The certificate of deposit pays 5% per year.

In this case, we know that the future value is $20,000 and time frame (2 years) and the interest rate (5% per year). Therefore, apply the above formula:-

- PV = 20,000 / (1.05) ^ 2 = 18,140.59

Actual Cash Value Calculator is used to calculate the Actual Cash Value (ACV) of an insured property

View ToolFind the future value of annuities due, regular annuities and growing annuities

View Tool- Jun 11, 2018
- Tool Launched

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