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You are considering creating an annuity and you want to compare your options. Calculate the following to determine which would be best. 5. An

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You are considering creating an annuity and you want to compare your options. Calculate the following to determine which would be best. 5. An annuity of $500 per year compounded continuously earning 8% for 6 years 6. An annuity of $650 per year compounded continuously earning 8% for 4 years 7. An annuity of $500 per year compounded continuously eaming 5% for 10 years 8. An annuity of $650 per year compounded continuously earning 7% for 6 years 9. Which of the options in #5-8 will earn you the most money? 10. Comparing #5 and #6, is it better to invest less money for a longer period of time or more money for less time (given they have the same interest rate)? Explain your reasoning.

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To determine which annuity option would be best and calculate the earnings we can use the formula for the future value of a continuous annuity FV P er... blur-text-image

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