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Reference no: EM133002718

You have a choice of two investment accounts.

Investment A is a 16-year annuity with $1,300 payments at the end of each month and a rate of 8%, compounded monthly.

Investment B is a lump-sum investment with an interest rate of 6.5%, compounded continuously for 16 years.

How much money would you need to invest in Investment B today for it to be worth as much as Investment A 16 years from now?

Reference no: EM133002718

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