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##### Asked by: Sawsan Dipper

personal finance life insurance# What is the meaning of maturity value?

Last Updated: 7th June, 2020

**maturity value**. The

**amount**to be paidtothe holder of a financial obligation at theobligation's

**maturity**. In the case of a bond, the

**maturityvalue**is the principal

**amount**of the bond to be paid bythe issuerto the owner at

**maturity**.

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Subsequently, one may also ask, what is the maturity value formula?

The **maturity value formula** is V = P x (1 +r)^n.You see that V, P, r and n are variables in the**formula**. Vis the **maturity value**, P is the originalprincipal**amount**, and n is the number of compoundingintervals fromthe time of issue to **maturity** date. Thevariable rrepresents that periodic interest rate.

Also, what is maturity value in compound interest? **Maturity Value** Definition. To calculatethe**maturity value** or the **maturity amount** fortheinvestments which are made by the investor, they need to sum upallof the **compounding interest** which they have earned overtheperiod to the initial or the principal**amount**invested.

Accordingly, what is maturity value insurance?

The **maturity value** of a life**insurance**policy is the **amount** of money that is paidout when itmatures. The **maturity value** of an**insurance** policybecomes payable when the contract finishesor matures. The**maturity value** of a life **insurance**policy is the**amount** of money that is paid out whenitmatures.

Is maturity value the same as future value?

When the period of an investment ends,**maturityvalue** is the sum of principal and interest -- themoney paidinto the investment and the **amount** the investmentearned.Calculating **maturity**, or **future value**, withcompoundinterest paid annually follows a standardequation.