S12-7 (similar to) Question Help Assume you make the following investments: You
ID: 2515723 • Letter: S
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S12-7 (similar to) Question Help Assume you make the following investments: You invest a lump sum of $8,000 for four years at 14% interest, what is the investment's value at the end of four years? In a different account earning 14% interest you invest S2,000 at the end of each year for four years. What is the investment's vai e atthe end of four years? a diferent account earning 14% interesea atvestS2 esattheer attee doffouryem? 1 b. 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 $8,000 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.) Investment's valueExplanation / Answer
(a) Investment Value = $13,511.68
Investment Value (Future Value) = Present Value x (FVF,14%,4Years)
= $8000 x 1.68868
= $13,511.68
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