K Assume you make the following investments: b. 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 year C. 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 $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 = Reference - X Future Value of $1 our Periods 1% 2% 3% 4% 5% 6% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 Period 4 1.041 1.082 1.126 1.170 1.216 Period 5 1.051 1.104 1.159 1.217 1.276 8% 10% 12% 14% 16% 18% 20% 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.262 1.360 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.762 1.925 1.939 2074 2.288 2.100 2488 Period 6 1.062 1.126 1.194 1.285 1.340 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.419 1.587 1.772 1.949 1.974 2211 2.195 2.436 2.700 2.986 2.502 2826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3278 3.759 4.300 Period 9 1.094 1.195 1.306 1.423 1.551 1.689 1.999 2.358 2773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5234 6.192 Period 11 1.116 1.243 1.384 1539 1.710 1.898 2332 2853 3.479 4226 5.117 6176 7 430 Period 12 1.127 1.268 1.426 1601 1.796 2012 2518 3.138 3.896 4818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.899 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10:147 12.839 Period 15 1.161 1346 1.558 1.801 2079 2.397 4.177 3.172 5474 7.138 9.266 11.974 15.407 Ge Period 20 1220 Period 25 1.282 1.486 1.806 1641 2004 2.191 2653 3.207 4661 6.727 9.646 13.743 19.461 27.393 r all 38.338 2BAR 3.30 4292 6848 10 835 17.000 28 462 40 874 62 689 95.396 Print Done D B Present Value of $1 Periods 1% 2% 3% ? (Round 4% 5% Period 1 0.990 0.980 0.971 0.962 Period 2. 0.980 0.961 0.943 Period 31 0.971 0.942 0.915 Period 4 0.961 0.924 Period 5 0.951 0.906 6% 8% 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 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.69 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.57 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.48 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.40 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0456 0.410 0370 0.33 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0452 0.400 0.354 0.314 0.27 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.23 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.19 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0227 0.191 0.16 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 Get m Period 20 0.820 0.673 Period 25 0780 0.554 0610 0478 0.237 0.196 0.162 0.13 0.650 0.585 0.527 0429 0.350 0.287 0.168 0137 0.11 0.625 0557 0497 0.397 0.319 0.257 0.208 0.601 0.530 0.469 0.368 0290 0.229 0.182 0.145 0.116 0.09 0.125 0.099 0.07 0.577 0.505 0.442 0.340 0263 0.205 0.160 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.06 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.059 0.038 0.024 0375 0295 0233 0146 0.037 0.02 0016 001 Clear all A Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2020 2.030 2.040 2050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4641 4.779 4.921 5.066 5215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5867 6.106 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 Period 7 7214 6.468 6.633 6.802 7.434 7.662 7.898 8.142 6975 7.336 7.716 8.115 8.536 8.977 9.442 9930 8.394 8.923 9.487 10 089 10.730 11.414 12.142 12.916 Period 9 Period 10 Period 8 8.286 9.389 10 462 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 9.755 10.159 10.583 10.950 11.464 12.006 11.027 11.491 12.488 13 579 14.776 16.085 17.519 19.086 20.799 12.578 13.181 14 487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 Period 12 12.683 13.412 Period 13 13.809 14 680 Period 14 Period 15 Period 20 14.947 15.974 16.097 22.019 Period 25 11.567 12.169 12 808 13.486 14 207 14.192 15.026 15.917 16.870 18.977 21.384 24.133) 15.618 16.627 17.713 18.882 21.495 24.523 28.029 17 086 18.292 19.599 21.015 24 215 17 293 18.599 20.024 21.579 28.276 24 297 26.870 29.778 28 243 32 030 36 459 41 648 47 727 54 885 73 108 98 347 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32 150 27271 30.850 34.931 39 5811 32.089 36.786 42.219 48.497 27.975 32 393 37.581 43.672 50 818 59 196 27.152 31.772 37 280 43 842 51 660 60.965 72.035 33.066 36.786 45.762 57 275 72.052 91.025 115.380 146 628 186.688 133.334 181.871 249 214 342603 471981 Present Value of Annuity of $1 Periods Period 13 12 134 Period 14 13.004 Period 15 13.865 8.306 7887 7.139 6.496 5.938 8.863 8.384 7.536 6.814 6.194 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6424 12.106 11.296 10.563 9 899 9.295 8.244 7.367 6.628 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0952 0.943 0.926 039 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2673 2577 2487 2402 2.322 2.246 2.174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2914 Period 5 4.853 4.713 4.580 4.452 4.329 4212 3.993 3.791 3.605 3.433 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 Period 9 8.566 8.162 7.786 7435 7.108 6 802 6.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10 368 9.787 9.253 8.760 Period 12 11.255 10.575 9.954 9.385 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 4.303 4.031 5.216 4.833 4.494 4.192 5.453 5 029 4.656 4.327 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 Cl Period 20 18 046 Period 25 22.023 16 351 14.877 13.590 12.462 11.470 9.818 19 523 17 413 15 622 14 094 12 783 10 675 8.514 7.469 6.623 5.929 5.353 4.870 9 077 7 843 6.873 6.097 5467 4948