Assume you make the following investments: You invest a lump sum of $7,550 for four years at 14% interest. What is the investment's value at the end of four years? b. In a different account earning 14% interest, you invest $1,888 at the end of each year for four years. What is the investment's value at the end of four years? What general rule of thumb explains the difference in the investments' future values? (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) a. You invest a lump sum of $7,550 for four years at 14% interest. What is the investment's value at the end of four years? (Round your answer to the nearest whole dollar.) e value Investment's value = i Reference Future Value of $1 Periods 6% 3% 1.030 1.061 1.093 1.126 1.159 5% 1.050 1.103 1.158 1.216 1.276 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 10% 1.100 1.210 1.331 1.464 1.611 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 20% 1.200 1.440 1.728 2.074 2.488 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 5.234 1.539 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1.601 1.665 5.117 5.936 6.886 7.988 9.266 1.886 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.980 2.079 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 1.732 1.801 2.191 2.666 3.243 4.801 1.220 1.282 1.348 1.489 3.207 1.486 1.641 1.811 2.208 2.653 3.386 4.322 7.040 4.292 5.743 10.286 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 Print Done i Reference Periods 5% 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 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 6% 8% 10% 1.000 11.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 15.327 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 16% 18% 1.000 1.000 2.160 2.180 3.506 3.572 5.066 5.215 6.877 7.154 8.977 9.442 11.414 12.142 14.240 17.519 19.086 21.321 23.521 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 115.380 146.628 249.214 342.603 530.312790.948 2,360.757 4,163.213 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 Print Done Reference Present Value of Annuity of $1 Periods vOWN 20% 0.833 1.528 2. 106 2.589 2.991 1% 2% 3% 4% 5% 6% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.783 2.9412.884 2.829 2.775 2.723 2.673 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.312 4.853 4.713 4.580 4.452 4.329 4.212 3.993 5.795 5.601 5.417 5.242 5.076 | 4.917 4.623 6.728 6.472 | 6.230 6.002 5.786 5.5825.206 7.652 7.325 7.020 6.733 6.463 6.210 5.747 8.566 8.162 7.786 | 7.435 7.108 6.802 6.247 9.471 8.983 8.530 8.111 7.722 7.360 6.710 10.368 9.787 9.253 8.760 8.306 7.887 | 7.139 11.255 10.575 9.954 9.385 8.863 | 8.384 | 7.536 12.134 11.348 10.635 9.986 9.394 8.853 7.904 13.004 12.106 11.296 10.563 9.899 9.295 8.244 13.865 12.849 11.938 11.118 10.380 9.712 8.559 18.046 16.351 14.877 13.590 12.462 11.470 9.818 22.023 19.523 17.413 15.622 14.094 12.783 10.675 25.808 22.396 19.600 17.292 15.372 13.765 11.258 32.835 27.355 23.115 19.793 17.159 15.046 11.925 10% 12% 14% 0.909 0.893 0.877 1.736 1.6901.647 2.487 | 2.402 2.322 3.170 3.037 2.914 3.791 3.605 3.433 4.355 4.111 3.889 4.868 4.564 4.288 5.335 4.968 4.639 5.759 5.328 4.946 6.145 5.650 5.216 6.495 5.938 5.453 6.814 6.194 5.660 7.103 6.424 5.842 7.367 6.628 6.002 7.606 6.811 6.142 8.514 7.469 6.623 9.077 7.843 6.873 9.427 8.055 7.003 9.779 8.244 7.105 16% 18% 0.862 0.847 1.6051.566 2.246 2.174 2.798 2.690 3.274 3.127 3.685 3.498 4.039 3.812 4.344 | 4.078 4.607 4.303 4.833 4.494 5.029 | 4.656 | 5.1974.793 5.342 4.910 5.468 5.008 | 5.575 5.092 5.929 | 5.353 6.097 5.467 6.177 5.517 6.233 5.548 = 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 40 Print Done Done i Reference Periods 1% 2% 3% 0.990 0.980 0.971 1.970 1.942 1.913 2.9412.884 | 2.829 3.902 3.808 3.717 4.853 4.713 | 4.580 5.795 5.601 5.417 6.728 6.472 | 6.230 7.652 7.325 7.020 8.566 8.162 7.786 9.471 8.9838.530 10.368 9.787 9.253 11.255 10.575 9.954 12.134 | 11.348 10.635 13.004 12.106 11.296 13.865 12.849 11.938 18.046 16.351 14.877 22.023 19.523 17.413 25.808 22.396 19.600 32.835 27.355 23.115 Present Value of Annuity of $1 4% 5% 6% 8% 10% 12% 14% 0.962 0.952 0.943 0.926 0.909 0.893 0.877 1.886 1.859 1.833 1.783 1.736 1.6901.647 2.775 | 2.723 | 2.673 2.577 | 2.487 2.402 2.322 3.630 3.546 3.465 3.312 3.170 | 3.037 2.914 4.452 4.329 | 4.212 3.993 3.791 3.605 3.433 5.242 5.076 4.917 4.623 4.355 4.111 3.889 6.002 5.786 5.582 5.206 4.868 4.564 4.288 6.733 6.463 6.210 5.747 5.335 4.968 4.639 7.435 7.108 6.8026.247 5.759 5.328 4.946 8.111 7.722 7.360 6.710 6.145 5.650 5.216 8.760 8.306 7.887 7.139 6.495 5.938 5.453 9.3858.863 | 8.384 | 7.536 6.814 6.194 5.660 9.986 9.394 | 8.853 7.904 7.103 6.424 5.842 10.563 9.899 9.295 8.244 7.367 6.628 6.002 11.118 9.7128.559 7.606 6.811 6.142 13.590 12.462 11.470 9.818 8.514 7.469 6.623 15.622 14.094 12.783 10.675 9.077 7.843 6.873 17.292 15.372 13.765 11.258 9.4278.055 7.003 19.793 17.159 15.046 11.925 9.779 | 8.244 7.105 16% 18% 20% 0.862 0.847 0.833 1.605 1.566 1.528 2.246 | 2.174 | 2.106 2.798 2.690 2.589 3.274 3.127 2.991 3.685 3.498 3.326 4.039 3.812 3.605 4.344 4.078 3.837 4.607 4.303 4.031 4.833 4.494 4.192 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 5.929 5.353 4.870 6.097 5.467 4.948 6.1775.517 4.979 6.233 5.548 4.997 30 Print Done