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You want to evaluate two different investment opportunities: Delta offers an annual interest rate of 8%, but is compounded monthly. You need to make equal
You want to evaluate two different investment opportunities: Delta offers an annual interest rate of 8%, but is compounded monthly. You need to make equal end-of-month $2,500 payments for 7 -years. Sigma offers an annual interest rate of 10%,compounded annually. You make a lumpsum investment now, and hold it for 7 years. How much money would you need to invest with Sigma, today, for it to be worth the same amount as Delta7 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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