S12-7 (similar to) Question Help Assume you make the following investments: You invest a lump sum of $8,550 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 $2,850 at the end of each year for three years. What is the investment's value at the end of three years? b. What general rule of thumb explains the difference in the investments' future values? C. (Click the icon to view the future value annuity factor table.) (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 present value annuity factor table.) Future Value of $1 3% 5% 16% 1% 4% 6% Periods 8% 10% 12% 14% 18% 20% 2% 1.030 1.040 1.060 1.200 1 1.010 1.020 1.050 1.080 1.100 1.120 1.140 1.160 1.180 1.440 1.082 1.103 1.166 1.392 2 1.020 1.040 1.061 1.124 1.210 1.254 1.300 1.346 1.06 1.030 1.331 1.405 1.093 1.125 1.158 1.191 1.260 1.482 1.561 1.643 1.728 1.041 1.082 1.216 1.574 1.939 2.074 2.488 4 1.126 1.170 1.262 1.360 1.464 1.689 1.811 1.762 1.104 2.288 1.051 1.159 1.217 1.276 1.338 1.469 1.611 1.925 2.100 1.340 1.772 2.195 1.062 1.126 1.194 1.265 1.419 1.587 1.974 2.436 2.700 2.986 1.149 7 1.072 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.172 1.267 1.851 8 1.083 1.369 1.477 1.594 2.144 2.476 2.853 3.278 3.759 4.300 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 10 1.105 1.219 1.344 1.480 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.116 1.539 2.332 5.117 7.430 11 1.243 1.384 1.710 1.898 2.853 3.479 4.226 6.176 3.138 2.518 2.720 1.268 5.936 7.288 8.916 12 1.127 1.426 1.601 1.796 2.012 3.896 4.818 1.294 3.452 8.599 10.699 13 1.138 1.469 1.665 1.886 2.133 4.363 5.492 6.886 1.149 1.161 1.319 12.839 14 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 1.346 1.558 2.397 3.172 5.474 9.266 15 1.801 2.079 4.177 7.138 11.974 15.407 1.220 9.646 20 1.486 1.806 2.191 2.653 3.207 4.661 6.727 13.743 19.461 27.393 38.338 2.666 4.292 17.000 25 1.282 1.641 2.094 3.386 6.848 10.835 26.462 40.874 62.669 95.396 1.348 4.322 29.960 50.950 30 1.811 2.427 3.243 5.743 10.063 17.449 85.850 143.371 237.376 3.262 7.040 93.051 378.721 750.378 1,469.772 40 1.489 2.208 4.801 10.286 21.725 45.259 188.884 Present Value of Annuity of $1 Periods 12% 14% 18% 1% 2% 3% 4% 5% 6% 8% 10% 16% 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 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 2.884 2.577 2.487 2.322 2.174 2.941 2.829 2.775 2.723 2.673 2.402 2.246 2.106 3.808 4 3.902 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.713 3.993 3.433 2.991 4.853 4.580 4.452 4.329 4.212 3.791 3.605 3.274 3.127 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.605 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 7.652 7.020 6.463 6.210 3.837 8 7.325 6.733 5.747 5.335 4.968 4.639 4.344 4.078 8.566 8.162 7.786 6.802 4.031 7.435 7.108 6.247 5.759 5.328 4.946 4.607 4.303 8.983 7.360 4.833 4.494 10 9.471 8.530 8.111 7.722 6.710 6.145 5.650 5.216 4.192 4.327 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 11.255 10.575 12.134 11.348 10.635 13.004 12.106 11.296 10.563 13.865 12.849 11.938 5.660 12 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.197 4.793 4.439 8.853 5.842 13 9.986 9.394 7.904 7.103 6.424 5.342 4.910 4.533 9.295 6.002 5.008 4.611 14 9.899 8.244 7.367 6.628 5.468 11.118 10.380 15 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 22.023 19.523 17.413 15.62214.094 25.808 22.396 19.600 17.292 15.372 13.76511.258 32.835 27.355 23.115 19.793 17.159 15.046 11.925 20 9.818 8.514 7.469 6.623 5.929 5.353 4.870 12.783 10.675 6.873 25 9.077 7.843 6.097 5.467 4.948 4.979 30 9.427 8.055 7.003 6.177 5.517 9.779 7.105 40 8.244 6.233 5.548 4.997 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.050 2.060 2.080 2.140 2.200 2.010 2.020 2.030 2.100 2.120 2.160 2.180 3.246 3.640 3.030 3.060 3.091 3.122 3.153 3.184 3.310 3.374 3.440 3.506 3.572 4.375 5.368 4 4.060 4.122 4.184 4.246 4.310 4.506 4.641 4.779 4.921 5.066 5.215 5.416 6.877 5.101 5.204 5.309 5.526 5.637 5.867 6.105 6.353 6.610 7.154 7.442 6.152 6.308 7.434 6.633 7.898 7.716 9.930 6 6.468 6.802 6.975 7.336 8.115 8.536 8.977 9.442 12.916 7 7.214 7.662 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 9.549 9.897 13.233 14.240 8 8.286 8.583 8.892 9.214 10.637 11.436 12.300 15.327 16.499 10.159 20.799 9 9.369 9.755 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 25.959 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 12.169 12.808 13.486 11 11.567 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 15.917 12 12.683 13.412 14.192 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 18.882 21.495 32.089 13 13.809 14.680 15.618 16.627 17.713 24.523 28.029 36.786 42.219 48.497 37.581 15.974 14 14.947 17.086 18.292 19.599 21.015 24.215 27.975 32.393 43.672 50.818 59.196 31.772 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 37.280 43.842 51.660 60.965 72.035 33.066 72.052 133.334 22.019 24.297 186.688 20 26.870 29.778 36.786 45.762 57.275 91.025 115.380 146.628 32.030 54.865 25 28.243 36.459 41.646 47.727 73.106 98.347 181.871 249.214 342.603 471.981 113.283 356.787 30 34.785 40.568 47.575 56.085 66.439 79.058 164.494 241.333 530.312 790.948 1,181.882 1,342.025 2,360.7574,163.2137,343.858 60.402 154.762 442.593 40 48.886 75.401 95.026 120.800 259.057 767.091 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.943 0.909 0.847 1 0.971 0.962 0.952 0.926 0.893 0.877 0.862 0.833 1.913 1.783 1.690 1.528 2 1.970 1.942 1.886 1.859 1.833 1.736 1.647 1.605 1.566 2.941 2.723 2.402 3 2.884 2.829 2.775 2.673 2.577 2.487 2.322 2.246 2.174 2.106 3.902 3.717 3.630 3.546 3.312 2.798 2.589 4 3.808 3.465 3.170 3.037 2.914 2.690 4.853 4.212 3.433 5 4.713 4.580 4.452 4.329 3.993 3.791 3.605 3.274 3.127 2.991 5.242 6.002 3.889 5.795 5.076 4.623 4.111 4.564 5.601 5.417 4.917 4.355 3.685 3.498 3.326 6.230 3.605 7 6.728 6.472 5.786 5.582 5.206 4.868 4.288 4.039 3.812 5.747 3.837 6.733 4.078 7.652 7.325 7.020 6.463 6.210 5.335 4.968 4.639 4.344 7.786 6.247 4.031 9 8.566 8.162 7.435 7.108 6.802 5.759 5.328 4.946 4.607 4.303 8.111 6.710 9.471 8.983 8.530 7.722 6.145 5.216 4.833 4.494 4.192 10 7.360 5.650 10.368 6.495 11 9.787 9.253 8.760 8.306 7.887 7.139 5.938 5.453 5.029 4.656 4.327 11.255 10.575 12.134 11.348 10.635 13.004 12.106 11.296 10.563 13.865 12.84911.938 11.118 10.380 6.194 5.197 12 9.954 9.385 8.863 8.384 7.536 6.814 5.660 4.793 4.439 9.986 9.394 8.853 7.103 6.424 13 7.904 5.842 5.342 4.910 4.533 9.899 6.628 5.468 5.008 4.611 14 9.295 8.244 7.367 6.002 7.606 6.811 5.092 15 9.712 8.559 6.142 5.575 4.675 18.046 16.351 14.87713.590 12.462 22.023 19.523 17.413 15.622 14.094 12.78310.675 25.808 22.396 19.600 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.818 4.870 20 11.470 8.514 7.469 6.623 5.929 5.353 7.843 25 9.077 6.873 6.097 5.467 4.948 17.292 15.372 13.765 11.258 7.003 4.979 30 9.427 8.055 6.177 5.517 7.105 6.233 40 9.779 8.244 5.548 4.997