Lump Sum Required
Contents
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.