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You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of-month $1,950 payments and has an APR of 8.4
You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of-month $1,950 payments and has an APR of 8.4 percent compounded monthly. Investment B is a lump-sum investment with an interest rate of 7.9 percent compounded continuously, 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 A 13 years from now?
You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of-month $1,950 payments and has an APR of 8.4 percent compounded monthly. Investment B is a lump-sum investment with an interest rate of 7.9 percent compounded continuously, 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 A 13 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Step by Step Solution
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