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You have your choice of two investment accounts. Investment A is a 13-year annuity that features endof-month $1,600 payments and has an APR of 7.8
You have your choice of two investment accounts. Investment A is a 13-year annuity that features endof-month $1,600 payments and has an APR of 7.8 percent compounded monthly. Investment B is a 7 percent continuously compounded lump sum investment, also good for 13 years. How much money would you need to invest in Investment B today for it to be worth as much as Investment A13 years from now? hint: present value PV=etFV with continuous compounding is Amount needed
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