Sum of contributions over their respective terms

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Reference no: EM133378569

Question: Annuity A requires annual contributions over 5 years and pays 5% compounded annually. Annuity B also has annual contributions over 30 years and pays 5% compounded annually. Each annuity will accumulate to $50,000 at the end of its term. Which Annuity has the greater amount of interest in them than the sum of contributions over their respective terms?

You must show your work to prove your answer. Respond with the letter of the Annuity.

Reference no: EM133378569

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