What is Lumpsum Calculator?

 

A lump sum calculator is a tool that helps determine the present value of a sum of money that will be received or paid in the future. The present value is calculated by discounting the future cash flows back to their current value, considering the time value of money.


Here's a basic formula for calculating the present value (PV) of a lump sum:


Where:

  • �� is the present value,
  • �� is the future value (the lump sum amount),
  • � is the interest rate per period, and
  • � is the number of periods.

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