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Consider two different investments: (a) A continuous income stream (that you continuously invest) of $120,000 per year for five years. (b) A lump sum payout
Consider two different investments:
(a) A continuous income stream (that you continuously invest) of $120,000 per year for five years.
(b) A lump sum payout now of $550,000.
In either scenario, assume that all the money is invested in an account bearing 5% interest compounded continuously.
Which investment would you choose? Justify your answer mathematically and explain how you came to this conclusion.
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