acct209 at Texas A&M

3. PV of a Lump Sum

in Time Value of Money (Video 3 of 7)
A lump sum is a single amount of money that we're trying to figure out the value of. $4,000 in ten years is different than $4,000 today. Using the present value of a lump sum, we can figure out how much that $4,000 in ten years will be worth today.

This Video Mentioned Some Formulas

Future Amount
* PV$1(i, n) (Look this up in the PV$1 Table)
Present Value of a Lump Sum

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