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How it works
A one-time investment in a mutual fund or stock that grows over time through compound interest.
The formula
A = P × (1 + r)^t- A
- Future Value
- P
- Principal Amount
- r
- Annual Return Rate
- t
- Time in Years
Worked example
₹1,00,000 invested for 10 years at 12% becomes ~₹3,10,585.
Pro tips
- Best for windfall gains like bonuses or inheritance.
Common mistakes
- Trying to perfectly time the market.
Go deeper
Related lessons
Concepts to explore
Power of compounding
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.