You have your choice of two investment accounts. Investment A is a 10-year annuity that features end-of-month
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You have your choice of two investment accounts. Investment A is a 10-year annuity that features end-of-month $1,000 payments and has an interest rate of 11.5 percent compounded monthly. Investment B is an 8 percent continuously compounded lump-sum investment, also good for 10 years. How much money would you need to invest in B today for it to be worth as much as Investment A 10 years from now?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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