1. Which variable has the biggest impact on TVM calculations? Examine a Future Value (FV) of an annuity problem where annual payments are $2,000, the rate of return is 8 percent, and the number of years is 10. Using these inputs, the FV of the annuity is $28,973.12. For the following questions, use the originally stated variables (PMT=2,000, N=10, and i=8 percent) except as indicated.

1. What is the FV if the annual payment is doubled from $2,000 to $4,000?

2. What is the FV if the interest rate is doubled from 8 percent to 12 percent?

3. What is the FV if the time period is doubled from 10 years to 20 years?

4. Which change has the biggest impact on the FV of the annuity?