Eric Lindquist is considering two plans for building an education fund for his children. Plan A-Invest $4,000 at the end of each year for 5 years. This investment will earn 10 percent annual interest. Plan B-Invest $30,000 now, earning 8 percent annual interest for 5 years. (Click the icon to view the present value factor table.) (Click the icon to view the present value of annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value of annuity factor table.) Requirement 1. Before making any calculations, which plan would you expect to provide the larger future amount? Using the tables provided, calculate the future value of each plan. Which plan provides the larger amount at the end of 5 years? Before making any calculations, which plan would you expect to provide the larger future amount? Refer to the information provided and using your knowledge of the time value of money-future concept, which plan would you expect to provide the larger future amount? You do not need to enter this amount, but keep your answer in mind as you complete this question. A Reference Periods | Ovo AWN 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.6450.592 0.614 0.558 Present Value of $1 7% 8% 10% | 0.935 0.926 | 0.909 0.873 0.857 0.826 0.816 0.794 0.751 0.763 0.735 0.683 0.713 0.681 0.621 0.666 0.630 0.564 0.623 0.583 0.513 0.582 0.540 0.467 | 0.544 0.500 0.424 0.508 0.463 0.386 12% | 0.893 | 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 X i Reference Periods OVO U AWN 4% 5% 1.040 1.050 1.082 1.103 1.125 11.158 1.170 1.216 1.217 1.276 1.265 1.340 1.316 1.407 1.369 1.477 1.423 1.551 1.480 1.629 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 Future Value of $1 7% 8% | 9% 1.070 1.080 1.090 1.145 | 1.166 1.188 1.225 1.260 1.295 1.311 1.360 1.412 1.403 1.469 1.539 1.501 | 1.587 1.677 1.606 1.714 1.828 1.718 1.851 1.993 1.838 1.999 2.172 1.967 2.159 2.367 10% 12% 1.100 1.120 1.210 11.254 1.331 | 1.405 1.464 | 1.574 1.611 1.762 1.772 1.974 1.949 | 2.211 2.144 2.476 2.358 2.773 2.594 3.106 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 Reference Periods 4% 5% 0.962 | 0.952 1.886 1.859 2.775 2.723 3.630 3.546 4.452 4.329 5.242 5.076 6.002 5.786 6.733 6.463 7.435 7.108 8.111 | 7.722 Present Value of Annuity of $1 6% 7% 8% 10% 0.943 0.935 | 0.926 0.909 1.833 1.808 1.783 1.736 2.673 2.624 2.577 2.487 3.465 3.387 3.312 3.170 4.212 4.100 3.993 3.791 | 4.917 4.767 4.623 4.355 5.582 5.389 5.206 | 4.868 6.210 5.971 5.747 5.335 6.802 | 6.515 6.247 5.759 7.360 7.024 6.710 6.145 12% 14% 0.893 0.877 1.6901.647 2.402 2.322 3.037 3.605 3.433 4.111 3.889 4.564 | 4.288 | 4.968 4.639 5.328 4.946 5.6505.216 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 Reference Periods 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 Future Value of Annuity of $1 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 2.060 2.070 2.080 2.090 3.1843.215 3.246 3.278 4.375 4.440 4.506 4.573 5.6375.751 5.867 5.985 6.975 7.153 7.336 7.523 8.394 8.654 8.923 9.200 9.897 10.260 10.637 11.028 11.491 11.978 12.488 13.021 13.181 13.816 14.487 15.193 10% 12% 1.000 1.000 2.100 2.120 3.310 3.374 4.641 | 4.779 6.105 16.353 7.716 8.115 9.487 10.089 11.436 12.300 13.579 14.776 15.937 17.549 14% 16% 1.000 1.000 2.140 2.160 3.440 3.506 4.921 5.066 6.610 6.877 8.536 8.977 10.730 11.414 13.233 14.240 16.085 17.519 19.337 | 21.321