Assume you make the following investments: a. You invest a lump sum of $8,750 for three years at 12% interest. What is the investment's value at the end of three years? In a different account earning 12% interest, you invest $2,917 at the end of each year for three years. What is the investment's value at the end of three y What general rule of thumb explains the difference in the investments' future values? b. C. (Click the icon to view the future value factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value annuity factor table.) a. You invest a lump sum of $8,750 for three years at 12% interest. What is the investment's value at the end of three years? (Round your answer to the nearest whole dollar.) Investment's value = $ 12.293 b. In a different account earning 12% interest, you invest $2,917 at the end of each year for three years. What is the investment's value at the end of three years (Round your answer to the nearest whole dollar.) Investment's value = le able.) Future Value of $1 Periods 1% 2% 3% 4% Period 11 1.010 1.020 1.030 1040 Period 21 1.020 1.040 1.061 1.082 Period 3 1.030 1.061 1.003 1.125 Period 4 1.041 1.082 1.126 1.170 Period 5 1.051 1.104 1.159 1217 1276 1338 Period 6 1.062 1.126 1.194 1.266 1.340 1.419 Period 7 1.072 1.149 1.230 1.316 1407 1504 Period 8 1.083 1.172 1.267 1360 1.477 Period 9 1.094 1.195 1.305 1423 1551 Period 10 1.105 1.219 1.344 1.480 1587 1772 1974 1714 1.949 2211 1.594 1851 2144 2.476 1689 1.900 2.368 2773 1.629 1.791 2150 2504 3.106 5% 6% 8% 10% 12% 14% 16% 18% 1.050 1.060 1080 1.100 1.120 1.140 1.160 1.180 1.103 1.124 1.166 1210 1.254 1300 1.346 1392 1.158 1.191 1.200 1.331 1.405 1.482 1.561 1.643 1.216 1.262 1360 14641 1,574 1.689 1.811 1.939 1.409 1.611 1.762 1.925 2100 2288 2.195 2.436 2700 2006 2502 2826 3.185 3583 2853- 3.278 3.759 4.300 3.252 3.803 4.435 5.160 5234 6.192 20% 1.200 1440 1.728 2074 Round 2.488 t's value 3707 4.411 Period 11 1.116 1243 1.384 1.539 1.710 1806 2.332 2.853 3479 4226 5.117 6.176 7.430 Period 12 1.127 Period 13 1.138 1268 1426 1.294 1.601 1.796 2012 2518 3.138 3.896 4.818 5936 7.288 8916 1.469 1.665 1.886 2133 2720 3.452 4363 5492 6.886 8.509 10609 Period 14 1.149 Period 15 1.161 Period 20 1220 Period 25 1.282 1.319 1.513 1.732 1980 2261 2.937 3797 4887 6.261 7.988 10 147 12 839 1.346 1.558 1.486 1.806 1641 2094 1.801 2079 2.397 3.172 4 177 5474 7.138 9.266 11.974 15.407 2.1911 2.653 3.207 2.666 3.386 4292 4.661 6.727 9646 13.743 19 461 27.393 38.338 6848 10 835 17 000 26 482 40 874 62669 96306 Clear al Periods 1% 2% 3% 4% Period 1. Period 2 0.980 0.900 0.980 0.971 0.962 0.961 0943 Period 3 0.971 Period 4 0.961 Period 5 0.951 Period 6 Present Value of $1 8% 5% 6% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 083 0.925 0907 0890 0 857 0826 0.797 0.769 0.743 0.718 0.60 0942 0.915 0889 0.864 0840 0.794 0.751 0.712 0.675 0.641 0.609 057 0.924 0.888 0.855 0.823 0.792 0.736 0.683 0.636 0.582 0.552 0.516 0.48 0.906 0.863 0.822 0784 0.747 0681 0.621 0567 0.519 0.478 0.437 0.40 0942 0.888 0.837 0.790 0746 0705 0630 0564 0.507 0.456 0.410 0.370 0.33 Period 7 0.933 0.871 0.813 0.760 0.711 0665 0.583 0.513 0452 0400 0.354 0314 0.27 0789 0.731 0.677 0.627 0540 0467 0.404 0.351 0.305 0.266 0.23 0 645 0.502 0.500 0424 0.361 0.308 0263 0.225 0.19 0.614 0558 0.463 0.386 0322 0.270 0.227 0.191 0.16 investment's value at the ctor table.) actor table.) ars? (Round your answe Period 8 0.923 0853 Period 9 0.914 0.837 0706 0.703 Period 10 0905 0.820 0.744 0.676 Period 11 0.806 0.804 0.722 0.650 Period 12 0887 0788 0.701 Period 13 0.879 0773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0642 0.585 0527 0429 0.350 0.287 0.237 0.196 0.162 0.13 0.625 0.557 0.497 0397 0.319 0.257 0208 0.168 0.137 0.11 0.601 0.530 0.460 0.368 0.290 0.229 0.182 0.145 0.116 0.09 0.577 0.505 0.442 0.340 0.263 0205 0.160 0.125 0.099 0.07 0.555 0.481 0.417 0315 0230 0.183 0140 0.108 0.084 006 stment's value at the or Period 20 0.820 0.673 0.554 0.456 0377 0312 0215 0.149 0.104 0.073 0.051 0.037 0.02 Period 25 0.780 0.610 0478 0375 0295 0233 0146 0082 0.059 0038 0024 0016 001 Future Value of Annuity of $1 Periods Period 1 1% 2% 3% 4% 5% 1.000 1.000 1.000 Period 2 2010 2020 2.030 Period 3 3.030 3.060 Period 4 4 060 4 122 1.000 2.040 3.091 3.122 4.184 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 2.120 3.153 3.184 3.246 3.310 3.374 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3:506 3.572 3.640 4.246 4.310 4.375 4.506 4.641 4.779 4.921. 5.066 5215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.106 6.353 6.610 6877 7.154 7.442 Period 6 6.152 6.308 6468 6.633 6,802 6.975 7.336 7.716 8.115 8.536 8.977 9 442 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 Period 9 9.369 9.755 10.159 10.583 11.027 11 491 12.488 13 579 14.776 16.085 Period 10 10.462 10.950 11 464 12.006 12 578 13.181 14.487 15.937 17.549 19.337 14.240 15.327 16.499 17.519 19.088 20.799 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16 645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12 683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24 133 27 271 Period 13 13 809 14.680 15.618 16.627 17.713 18.882 21 495 24 523 28.029 32.089 Period 14 14 947 15 974 17 086 18 292 19.599 21.015 24.215 27.975 32 393 37.581 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 Period 15 16 097 17 293 18.599 20.024 21.579 23.276 27.152 31.772 37 280 43.842 51.660 60.965 72.035 Period 20 22 019 24 297 Perind 25 28 243 32 030 26.870 29.778 36 459 41 646 33.066 47 727 36.786 45.762 54 865 73 106 57.275 72.052 91.025 115 380 146.628 186 688 98 347 133 334 181 871 249 214 342 803 471.981 pages Get m table Present Value of Annuity of $1 for tab Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1 0990 0.980 0971 0.962 0.952 0.943 0.926 0909 0.893 0.877 0862 0.847 0833 Period 2 1970 1942 1913 1.886 1.859 1833 1.783 1.736 1690 1.647 1.605 1.566 1528 Period 3 2.941 2884 2829 2.775 2.723 2673 2.577 2487 2402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2600 2589 Period 5 4.853 4.713 4.580 4 452 4329 4212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5,795 5.601 5417 5242 5076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3326 Period 7 6.728 6.472 6.230 6.002 5786 5 582 5206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7.652 Period 9 8.566 Period 10 9.471 Period 11 10.368 Period 12 11 255 Period 13 12 134 Period 14 13.004 Period 15 13.865 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7469 6.623 5929 5.353 4.870 Period 25 22 023 19 523 17 413 15 622 14 094 12 783 10 675 9 077 7 843 6873 6097 5.467 16% 18% 20% ? (Rom 7 325 7.020 6.733 6463 6.210 5.747 5335 4.968 4.639 4.344 4.078 3.837 8.162 7.786 7 435 7.108 6.802 6.247 5.750 5.328 4.946 8.983 8.530 8.111 7.722 7.360 6710 6 145 5.650 5216 4.607 4.303 4.031 4.833 4.494 4.192 9.787 9253 8.760 8306 7.887 7.139 6.495 5938 5 453 5 029 4656 4.327 10.575 9.954 9.385 8863 8384 7536 6.814 6.194 5.660 5.197 4.793 4.439 11.348 10 635 9.986 9.394 8853 7.904 7.103 6424 5842 5342 4.910 4533 12 106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 mont's 4.948 Print Dese Clea