If you know the future value of an investment, number of payment periods and interest rate, then you can easily calculate the present value of an investment.
You can use this google sheets template to calculate the present value of a lump sum.
| Name: | Present Value Lump Sum template |
| Category: | Personal Finance |
| Application: | Google sheets |
| Tags: | Present Value Lump Sum Template google sheets |
Screenshots of the template:
FAQ:
What is a lump sum amount?
A lump sum amount is a single payment of money that is typically paid all at once, rather than in installments.
What is the future value of an investment?
The future value of an investment is the value of the investment at a future date.
Future value formula to calculate the future value from a present value?
The formula for calculating the future value from a present value is:
Future Value = Present Value * (1 + Interest Rate)^Number of Years
For example, if you have a present value of $1,000 and an interest rate of 5%, the future value of the investment after 10 years would be:
Future Value = $1,000 * (1 + 0.05)^10
Future Value = $1,627.28
