11. Allen Hamilton is considering two plans for building an education fund for his children. Plan A Invest $7,000 at the end of each year for 6 years. This investment will earn 10 percent annual interest. Plan B-Invest $10,000 now, earning 8 percent annual interest for 6 years. 12(Click the icon to view the present value factor table.) 13(Click the icon to view the present value of annuity factor table.) 14(Click the icon to view the future value factor table.) 15(Click the icon to view the future value of annuity factor table.) Requirement 1. Before making any calculations, which plan would you expect to provide the larger future amount? Using the tables provided, calculate the future value of each plan. Which plan provides the larger amount at the end of 6 years? Before making any calculations, which plan would you expect to provide the larger future amount? Refer to the information provided and using your knowledge of the time value of money-future concept, which plan would you expect to provide the larger future amount? You do not need to enter this amount, but keep your answer in mind as you complete this question. Select the formula and enter the amounts to calculate the future value of Plan A. (Enter the factor amount to three decimal places, X.XXX, and round your final answer to the nearest whole dollar.) (1) (2 ) Future value under plan A Select the formula and enter the amounts to calculate the future value of Plan B. (Enter the factor amount to three decimal places, X.XXX, and round your final answer to the nearest whole dollar.) (3) (4) = Future value under plan B Which plan provides the larger amount at the end of 6 years? (5) provides the larger amount at the end of 6 years. 12: Reference Periods 4% | 0.962 0.925 0.889 0.855 5 0.822 0.790 0.760 0.731 0.703 10 0.676 OVO AWN- 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 | 0.558 Present Value of $1 7% 8% 0.935 0.926 0.873 0.857 0.816 0.794 0.763 0.735 0.713 0.681 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 | 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 SCI Periods 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 .111 5% 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 Present Value of Annuity of $1 6% 7% 8% 10% 0.943 0.935 0.926 0.909 1.833 1.808 1.783 1.736 2.673 2.624 2.577 2.487 3.465 3.387 3.312 3.170 4.212 4.100 3.993 3.791 4.917 4.767 4.623 4.355 5.389 5.206 4.868 6.210 5.971 5.747 5.335 6.802 6.515 6.247 5.759 7.360 7.024 6.710 6.145 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.582 10 8 14: Reference Periods 16% 1.160 1.346 1.561 1.811 OVO AWN- 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 Future Value of $1 7% 8% 9% 1.070 1.080 1.090 1.145 1.166 1.188 1.225 1.260 1.295 1.311 1.360 1.412 1.403 1.469 1.539 1.501 1.587 1.677 1.606 1.714 1.828 1.718 1.851 1.993 1.838 1.999 2.172 1.967 2.159 2.367 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 2.100 2.436 2.826 3.278 3.803 4.411 10 15: Reference Periods 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 Future Value of Annuity of $1 5% 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.070 2.080 2.090 3.153 3.184 3.215 3.246 3.278 4.310 4.375 4.440 4.506 4.573 5.526 5.637 5.751 5.867 5.985 6.802 6.975 7.153 7.336 7.523 8.142 8.394 8.654 8.923 9.200 9.5499.897 10.260 10.637 11.028 11.027 11.491 11.978 12.488 13.021 12.578 13.181 13.816 14.487 15.193 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 8 10