Annuity with a present value

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You have $1,000 to invest. Would you rather invest in an account that earns 3.25% interest, compounded annually, or an account that earns 3.1% interest, compounded daily?

You have a choice -- an annuity with a present value of $100 or a future value of $100. You have five seconds to choose: which one do you want?

Would you rather have payments of $1,000 per year for 10 years or $800 per year for 15 years? Assume annual interest rates are at 10%.

Reference no: EM131115301

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