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A lump sum is a one-time payment to an employee. Examples are bonuses, commissions, severance, and vacation payouts.
sum distribution is a onetime payment from your pension administrator. By taking a lump sum payment, you gain access to a large sum of money, which you can spend or invest as you see fit.
In economics, the lump sum principle states that a tax on a person's general purchasing power is more efficient than a tax on specific goods.
Present Value of a Lump Sum - YouTube YouTube Start of suggested clip End of suggested clip These values into the present value of a lump sum formula. Which is future value divided by one plusMoreThese values into the present value of a lump sum formula. Which is future value divided by one plus the rate raised to the number of periods.
Definition: A lump sum amount is defined as a single complete sum of money. A lump sum investment is of the entire amount at one go. For example, if an investor is willing to invest the entire amount available with him in a mutual fund, it will refer to as lump sum mutual fund investment.