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Present Value of Lumpsum Calculator

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Present Value Basics of Time Value of Money Future value

✖Future Value is the calculated future value of any investment.ⓘ Future Value [FV]			+10% -10%
✖Interest Rate per Period refers to the rate at which interest is applied or accrued over a single time period.ⓘ Interest Rate per Period [IR_P]			+10% -10%
✖The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.ⓘ Number of Periods [n_Periods]			+10% -10%

✖Present Value of Lumpsum is the current worth of a future sum of money, discounted at a certain rate of return or interest rate.ⓘ Present Value of Lumpsum [PV_L]

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Present Value of Lumpsum Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods
PV_L = FV/(1+IR_P)^n_Periods
This formula uses 4 Variables

Variables Used

Present Value of Lumpsum - Present Value of Lumpsum is the current worth of a future sum of money, discounted at a certain rate of return or interest rate.
Future Value - Future Value is the calculated future value of any investment.
Interest Rate per Period - Interest Rate per Period refers to the rate at which interest is applied or accrued over a single time period.
Number of Periods - The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

STEP 1: Convert Input(s) to Base Unit

Future Value: 33000 --> No Conversion Required
Interest Rate per Period: 0.06 --> No Conversion Required
Number of Periods: 2 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PV_L = FV/(1+IR_P)^n_Periods --> 33000/(1+0.06)^2

Evaluating ... ...

PV_L = 29369.8825204699

STEP 3: Convert Result to Output's Unit

29369.8825204699 --> No Conversion Required

FINAL ANSWER

29369.8825204699 ≈ 29369.88 <-- Present Value of Lumpsum

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< Present Value Calculators

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LaTeX Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

LaTeX Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value of Future Sum given Total Number of Periods

LaTeX Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value of Lumpsum Formula

LaTeX Go

Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods
PV_L = FV/(1+IR_P)^n_Periods

What is Present Value of Lumpsum?

The present value of a lump sum is a financial concept that evaluates the current worth of a future cash amount, factoring in the time value of money. This calculation is rooted in the understanding that a sum of money available in the future is not as valuable as the same amount in hand today. By discounting the future value at a specific interest rate, the present value represents the amount one would need now to be equivalent to the anticipated future sum.

How to Calculate Present Value of Lumpsum?

Present Value of Lumpsum calculator uses Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods to calculate the Present Value of Lumpsum, The Present Value of Lumpsum formula is defined as the current worth of a future sum of money, discounted at a certain rate of return or interest rate. Present Value of Lumpsum is denoted by PV_L symbol.

How to calculate Present Value of Lumpsum using this online calculator? To use this online calculator for Present Value of Lumpsum, enter Future Value (FV), Interest Rate per Period (IR_P) & Number of Periods (n_Periods) and hit the calculate button. Here is how the Present Value of Lumpsum calculation can be explained with given input values -> 29931.97 = 33000/(1+0.06)^2.

FAQ

What is Present Value of Lumpsum?

The Present Value of Lumpsum formula is defined as the current worth of a future sum of money, discounted at a certain rate of return or interest rate and is represented as PV_L = FV/(1+IR_P)^n_Periods or Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods. Future Value is the calculated future value of any investment, Interest Rate per Period refers to the rate at which interest is applied or accrued over a single time period & The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

How to calculate Present Value of Lumpsum?

The Present Value of Lumpsum formula is defined as the current worth of a future sum of money, discounted at a certain rate of return or interest rate is calculated using Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods. To calculate Present Value of Lumpsum, you need Future Value (FV), Interest Rate per Period (IR_P) & Number of Periods (n_Periods). With our tool, you need to enter the respective value for Future Value, Interest Rate per Period & Number of Periods and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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