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You have your choice of two investment accounts. Investment A is a 15-year annuity that features end-of-month $1,175 payments and has a rate of 6.4
You have your choice of two investment accounts. Investment A is a 15-year annuity that features end-of-month $1,175 payments and has a rate of 6.4 percent compounded monthly. Investment B is a lump-sum investment with a 7 percent continuously compounded rate, also good for 15 years. |
How much money would you need to invest in B today for it to be worth as much as Investment A 15 years from now? |
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