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Lump-Sum Deposit $25,000 Here are two ways of investing $25,000 for 25 years. Rate 4% compounded annually Time 25 years Periodic Deposit Rate $1000

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Lump-Sum Deposit $25,000 Here are two ways of investing $25,000 for 25 years. Rate 4% compounded annually Time 25 years Periodic Deposit Rate $1000 at the end of each year 4% compounded annually Time 25 years P[(1+r) - 1] 1 Use this information and the formulas A = P(1+r) and A= to complete parts a. and b. below. r a. After 25 years, how much more will you have from the lump-sum investment than from the annuity? You will have approximately $ more from the lump-sum investment than from the annuity. (Round to the nearest dollar as needed.)

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