The variable that you are solving for in a present value of a lump sum problem is the Present Value.
A lump-sum payment is a large sum that is paid in form of a single payment instead of being divided into installments.
The present value of a lump sum is the worth of a lump sum right now.
The formula for determining the present value is
P = PMT * [1 – [ (1 / 1+r)^n] / r] where:
P = Present value of your annuity stream
PMT = Dollar amount of each payment
r = interest rate
n = Number of periods
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