Question
You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,280 payments and has an interest rate of
You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,280 payments and has an interest rate of 9 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 11 percent, also good for 7 years.
How much money would you need to invest in B today for it to be worth as much as Investment A 7 years from now?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
