# Question: Assume that you make the following investments a You invest

Assume that you make the following investments:

a. You invest a lump sum of $ 8,750 for five years at 12% interest. What is the investment’s value at the end of five years?

b. In a different account earning 12% interest, you invest $ 1,750 at the end of each year for five years. What is the investment’s value at the end of five years?

c. What general rule of thumb explains the difference in the investments’ future values?

a. You invest a lump sum of $ 8,750 for five years at 12% interest. What is the investment’s value at the end of five years?

b. In a different account earning 12% interest, you invest $ 1,750 at the end of each year for five years. What is the investment’s value at the end of five years?

c. What general rule of thumb explains the difference in the investments’ future values?

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