# Future Value of Lump Sum Calculator

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 Ã— 2
• = \$11,327.81
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