Lump Sum Required

Example #1

What is the lump sum deposit required today for an account to grow to $1,000,000 in 25 years, growing at 7% with no additional deposits.

Data Entry

Use the following values for the prompts:


Prompt

Value


Calculation Type

Accumulation


Calculate

Current Value


Interest Rate

7


Number of Years

25


Deposits per Year

0


Amount of Each Deposit

0


Type of Deposits

Level Deposits


Deposits Made at

End of Period


Future Value

$1,000,000

The Calculated Current Value shows 184,249.18.

Example #2

If the interest rate was 8%, how much would the lump sum deposit be?

Data Entry

Enter '8' for the rate of return and press tab.

Result

The Calculated Current Value shows $146,017.88.

Example #3

What is the lump sum deposit required today if the client were to deposit $250 per month, increasing by 3% per year?

Data Entry

Change the following prompts to the values shown:


Prompt

Value


Deposits per Year

12


Amount of Each Deposit

250


Type of Deposits

Annual Increase by Percent


Annual Increase in Deposit

3

Results

The Calculated Current Value shows $102,577.00.