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Lump Sum Future Value Calculator

Use this calculator to determine the future value of a lump sum.

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14y ago

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Lump Sum Present Value Calculator?

Lump Sum Present Value Calculator Use this calculator to determine the present value of a future lump sum.


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Lump Sum Annual Rate of Return Calculator Use this calculator to determine the annual rate of return of known lump sum starting and ending amount.


How does the NY State Lottery calculate the lump sum cash amount for winning the Mega Millions top prize?

The value shown for the lotto represents what you will earn in 20 years. The lump sum is the present value of that future sum. to make it simple, suppose the jackpot is $1000. If you were to opt for payments instead of lump sum, you would get a certain amount of money every year for twenty years that would add up to 1000 dollars. so if the jackpot is 300 million dollars you would need a financial calculator to figure out what the interest is, the amount of periods (if it is 20 years it is 240 periods). after you figure out the present value, taxes which is 50% of that to calculate the lump sum.


Is an annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future annuity payments?

An annuity is typically worth less than a lump sum payment when considering the time value of money. This concept states that a dollar today is worth more than a dollar in the future due to its potential earning capacity. Therefore, the total present value of future annuity payments, when discounted back to the present, is usually lower than a lump sum payment received now.


Which variables would be included when using technology to calculate the present value of a lump sum?

When calculating the present value of a lump sum using technology, the key variables include the future value of the lump sum, the discount rate (interest rate), and the time period until the payment is received. The present value formula itself is PV = FV / (1 + r)^n, where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods. Additionally, the calculation may also consider factors such as inflation rates or investment risk, depending on the context.


Is a annuity worth more or less than a lump sum payment received now that would be equal to the sum of all the future payments?

It is worth more than a one lump sum.


How do you account for structured settlement factoring?

Structured settlement factoring involves the sale of future payment rights from a structured settlement in exchange for a lump sum payment. To account for this transaction, the present value of the future payments is calculated using an appropriate discount rate, reflecting the time value of money. The lump sum received is recorded as cash, while the receivable from future payments is derecognized. The difference between the present value and the amount received may be recognized as a gain or loss in the financial statements.


How is the future value related to the present value of a single sum?

The present value is the reciprocal of the future value.


Lump Sum Settlement Can Be Sold?

If a person wins a lawsuit, a settlement agreement may be reached that provides income to the plaintiff in one large lump sum, but the timing of payment may be at some time in the future. There may be appeals that take up time before the ultimate settlement occurs. Other awards, like a large lottery win, promise a future lump sum settlement. Divorces may also contain lump sum settlement agreements that are to occur in the future. These lump sum settlement agreements can be bought and sold like assets. Occasionally there is some court involvement if the settlement requires supervision to protect the interests of the settlement holder. The main reason a court might intervene in the sale of a lump sum settlement would only be to protect the person who is to receive that settlement. Perhaps a person is physically or mentally disabled for life and can no longer work. The lump sum settlement provides needed income for that person that may be expected to last for their lifetime. If a settlement holder sells their arrangement to obtain a lump sum of cash right now, instead of in the future, that is a possibility. They will pay a large fee to the company that buys out their settlement. They receive a large, but lesser amount of cash at one time, and they get it right now instead of at some future date. If a lump sum settlement is sold, the payee is no longer the person who will receive the future lump sum. The company that has loaned them the lump sum of cash will receive the large payment whenever it does materialize. The lender gets a big fee plus their money back. It is an investment for them and an immediate windfall for the person who is selling out their settlement agreement. There are many reasons for wanting to sell out a lump sum settlement agreement before it is actually paid. What a person does with their settlement is optional unless the court is supervising the settlement for the recipient.


What is the current value of a future sum of money called?

present value


What is the current value of a future sum called?

It is called the present value.


Which term is defined as the value of a current sum of money at a specified date in the future?

It is called the 'future value' .