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Assume you make the following investments: a. You invest a lump sum of $7,550 for five years at 12% interest. What is the investment's value
Assume you make the following investments:
a. | You invest a lump sum of $7,550 forfive years at12% interest. What is the investment's value at the end offivefive years? |
b. | In a different account earning 1212% interest, you invest$1,510 at the end of each year forfivefive years. What is the investment's value at the end offivefive years? |
c. | What general rule of thumb explains the difference in the investments' future values? |
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