Endowment Growth Calculator

Formula

The formula to calculate the Future Value (FV) of an endowment is:

\[ FV = P \times (1 + r)^n \]

Where:

Endowment Growth: The increase in value of an endowment fund over time due to investment returns. Endowments are funds that are invested to generate income, often for non-profit organizations, universities, or charities.
Initial Principal (P): The starting amount of money in the endowment.
Annual Growth Rate (r): The yearly rate at which the endowment grows, expressed as a decimal.
Number of Years (n): The period over which the endowment grows.

Let's say the initial principal is $100,000, the annual growth rate is 5%, and the number of years is 10. Using the formula:

\[ FV = 100000 \times (1 + 0.05)^{10} \]

We get:

\[ FV \approx 162,889.46 \]

So, the future value of the endowment is approximately $162,889.46.

Extended information about "Endowment-Growth-Calculator"

Formula: $ \text{Spending Amount} = \text{Endowment Value} \times \text{Spending Rate} $

Example: $ \text{Spending Amount} = 1000000 \times 0.05 $

Formula: $ \text{Maturity Amount} = \text{Sum Assured} + \text{Bonus} $

Example: $ \text{Maturity Amount} = 500000 + 100000 $

Formula: $ \text{Premium} = \frac{\text{Sum Assured}}{\text{Policy Term}} + \text{Additional Charges} $

Example: $ \text{Premium} = \frac{500000}{20} + 500 $