About the investments, You have your choice of 3

About the investments

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Reference no: EM131047731

You have your choice of 3 investments. Investment A is a 15-year annuity that features end of month $2500 payments and has an interest rate of 6.5% compounded monthly. Investment B is a 6 percent continuously compounded lump sum investment also for 15 years. How much would you need to invest in B today for it to be worth as much as investment A in 15 years from now? If you invested the same amount as in B in a consol or perpetuity [C] and it paid 6% what would it pay annually?

Reference no: EM131047731

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