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You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $2,000 payments and has an interest rate of
You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $2,000 payments and has an interest rate of 9.7 percent compounded monthly. Investment B is an 9.2 percent continuously compounded lump-sum investment, also good for 14 years.
How much money would you need to invest in B today for it to be worth as much as Investment A 14 years from now?
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