PV and FV Calculations

Source:

https://www.calculatorsoup.com/calculators/financial/future-value-calculator.php

Notes:

• Excludes Compounding Growth % for simplicity

• Estimate Avg. Inflation Rate of 3.5%

————— For BInvT —————

PV: 100K PV: 100K

Periods: 10 Periods: 10

Rate (R): 3.5% Rate (R): 3.5%

Compounding (m): 1 Compounding (m): 1

Amount (PMT): 0K Amount (PMT): 5K

FV: 141K FV: 200K

Notes:

• Brandon will be Age 18 in Periods 10 (10 Years)

————— For EK —————

PV: 1M PV: 1M

Periods: 10 Periods: 25

Rate (R): 3.5% Rate (R): 3.5%

Compounding (m): 1 Compounding (m): 1

FV: 1.41M FV: 2.36M

Notes:

• Excludes Growth % and Annual Contributions in calculations)

• EK will be Age 50 in Periods 10 (10 Years)

• EK will be Age 65 in Periods 25 (25 Years)

Summary:

• Using avg. inflation rate of 3.5% (for inflation adjusted):

• 100K in today’s dollars is the same as 141K 10 years from today.

• 100K in today’s dollars, with 5K annual contributions, is the same as 200K 10 years from today.

• 1M in today’s dollars is the same as 1.41M 10 years from today.

• 1M in today’s dollars is the same as 2.36M 25 years from today.