By knowing how to calculate the impact of compounding on a lump sum given a projected interest rate, you can have a better sense of just how far your savings might go in the future.

To calculate the effect of compounding on a lump sum, you need to know the amount of the lump sum, the rate of interest for your return, and the number of years you expect to invest.

To calculate the effect of compounding on a lump sum, you need to know the amount of the lump sum, the rate of interest for your return, and the number of years you expect to invest.