Enter the principal investment, rate of interest, and time of investment into the calculator. The calculator will determine the maturity value of the investment.
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Maturity Value Formula
The following formula can be used to calculate the maturity value of an investment.
V = P * (1+R)^T
- V – Maturity Value
- P – Principal Invested
- R – Rate of Interest
- T – Time of Investment
Maturity Value Definition
A maturity to value is a measure of how much an investment will make at “maturity”. Maturity could be any time frame or a specific time frame designated by the investment.
Maturity Value Example
How to calculate maturity value?
First, determine the total principal invested.
For this example, the total principal invested is found to be $50,000.00.
Next, determine the rate of interest.
In this case, the interest rate is 4%.
Next, determine the total time of the investment.
For this example, the time of the investment is 5 years.
Finally, calculate the maturity using the formula above:
V = P * (1+R)^T
V = 50000 * (1+.04)^5
V = $60,832.64
FAQ
A maturity value is a measure of the amount an investment will make at it’s maturity time.
How to calculate maturity value?
- First, determine the principal invested.
Calculate the total principal invested.
- Next, determine the rate of interest.
Determine the rate of interest on the investment.
- Next, determine the time of investment.
Determine the total time of investment.
- Finally, calculate the maturity.
Using the formula above, calculate the maturity.
