Milo Moneybags is considering an investment that will pay him $1,050 at the end of each year for seven years and then will pay a lump sum of $15,000 at the end of that time.

Required
A. If Milo requires his investments to earn 9% interest, what is the maximum amount he should pay for the investment at the beginning of the seven-year period?
B. Assume Milo requires his investment to earn 5% interest. What is the maximum amount he should pay for the investment described in part A?
C. Which investment will cost Milo the greater amount? Why is there a difference in the costs?