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Find lump-sum investment with an interest rate

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You have your choice of two investment accounts. Investment A is a 13-year annuity that features end-of-month $1,950 payments and has a rate of 8.4 percent compounded monthly. Investment B is a lump-sum investment with an interest rate of 7.9 percent compounded continuously, also good for 13 years.

How much money would you need to invest in B today for it to be worth as much as Investment A 13 years from now?

Reference no: EM133057581

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