﻿ Lump Sum Required

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:

## 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

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.