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Present Value of Lumpsum Formula

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Present Value of Lumpsum is the current worth of a future sum of money, discounted at a certain rate of return or interest rate. Check FAQs

PV L = \frac{FV}{{(1 + IR P)}^{n Periods}}

PV_L - Present Value of Lumpsum?FV - Future Value?IR_P - Interest Rate per Period?n_Periods - Number of Periods?

Present Value of Lumpsum Example

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Here is how the Present Value of Lumpsum equation looks like with Values.

Here is how the Present Value of Lumpsum equation looks like with Units.

Here is how the Present Value of Lumpsum equation looks like.

29369.8825 = \frac{33000}{{(1 + 0.06)}^{2}}

29369.8825 = \frac{33000}{{(1 + 0.06)}^{2}}

29369.8825 = \frac{33000}{{(1 + 0.06)}^{2}}

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Present Value of Lumpsum Solution

Follow our step by step solution on how to calculate Present Value of Lumpsum?

FIRST Step Consider the formula

PV L = \frac{FV}{{(1 + IR P)}^{n Periods}}

Next Step Substitute values of Variables

∴

PV L = \frac{33000}{{(1 + 0.06)}^{2}}

Next Step Prepare to Evaluate

∴

PV L = \frac{33000}{{(1 + 0.06)}^{2}}

Next Step Evaluate

∴

PV L = 29369.8825204699

LAST Step Rounding Answer

∴

PV L = 29369.8825

Present Value of Lumpsum Formula Elements

Variables

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.

Symbol: PV_L

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Present Value of Lumpsum

Future Value

Future Value is the calculated future value of any investment.

Symbol: FV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Future Value

Interest Rate per Period

Interest Rate per Period refers to the rate at which interest is applied or accrued over a single time period.

Symbol: IR_P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Rate per Period

Number of Periods

The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

Symbol: n_Periods

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Number of Periods

Other formulas in Present Value category

Go Present Value of Annuity

PVAnnuity = (\frac{p}{IR}) \cdot (1 - (\frac{1}{{(1 + IR)}^{n Months}}))

Go Present Value of Future Sum given compounding periods

PV = \frac{FV}{{(1 + (\frac{%RoR}{C n}))}^{C n \cdot n Periods}}

Go Present Value of Future Sum given Total Number of Periods

PV = \frac{FV}{{(1 + IR)}^{t}}

Go Present Value of Future Sum given Number of Periods

PV = \frac{FV}{\exp (%RoR \cdot n Periods)}

How to Evaluate Present Value of Lumpsum?

Present Value of Lumpsum evaluator uses Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods to evaluate 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 evaluate Present Value of Lumpsum using this online evaluator? To use this online evaluator 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.

FAQs on Present Value of Lumpsum

What is the formula to find Present Value of Lumpsum?

The formula of Present Value of Lumpsum is expressed as Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods. Here is an example- 29931.97 = 33000/(1+0.06)^2.

How to calculate Present Value of Lumpsum?

With Future Value (FV), Interest Rate per Period (IR_P) & Number of Periods (n_Periods) we can find Present Value of Lumpsum using the formula - Present Value of Lumpsum = Future Value/(1+Interest Rate per Period)^Number of Periods.

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Present Value of Lumpsum Formula

Present Value of Lumpsum Example

Present Value of Lumpsum Solution

Present Value of Lumpsum Formula Elements

Other formulas in Present Value category

How to Evaluate Present Value of Lumpsum?

FAQs on Present Value of Lumpsum

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