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How much money would you need to invest

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Question - You have your choice of two investment accounts. Investment A is a 12-year annuity that features end-of-month $1,600 payments and has a rate of 7.7 percent compounded monthly. Investment B is a lump-sum investment with an interest rate of 7.2 percent compounded continuously, also good for 12 years.

How much money would you need to invest in B today for it to be worth as much as Investment A 12 years from now?

Reference no: EM132982890

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