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Choice of two investment accounts

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You have your choice of two investment accounts. Investment A is a 20-year annuity that features end-of-month NKr12,000 payments and has an interest rate of 6 per cent compounded monthly. Investment B is an 8 per cent continuously compounded lump sum investment, 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 20 years from now?

Reference no: EM133076490

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