Maturity Value Calculator

Formula

To calculate the maturity value ($V$):

\[ V = P \times (1 + R)^T \]

Where:

$V$ is the maturity value (\$)
$P$ is the principal invested (\$)
$R$ is the rate of interest (as a decimal)
$T$ is the time of investment (years)

Maturity Value Definition

Maturity value measures how much an investment will make at maturity. Maturity could be any time frame or a specific time frame designated by the investment. It is the total amount an investment is worth at the end of its term, including the principal and the interest earned over time.

Example Calculation 1

Let's assume the following values:

Principal Invested ($P$) = \$1,000
Rate of Interest ($R$) = 5% (0.05 as a decimal)
Time of Investment ($T$) = 3 years

Using the formula:

\[ V = 1000 \times (1 + 0.05)^3 \approx 1000 \times 1.157625 = 1157.63 \text{ \$} \]

The maturity value is approximately \$1157.63.

Example Calculation 2

Let's assume the following values:

Principal Invested ($P$) = \$2,500
Rate of Interest ($R$) = 7% (0.07 as a decimal)
Time of Investment ($T$) = 5 years

Using the formula:

\[ V = 2500 \times (1 + 0.07)^5 \approx 2500 \times 1.402551 = 3506.38 \text{ \$} \]

The maturity value is approximately \$3506.38.