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Choice of two investment accounts

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You have your choice of two investment accounts. Investment A is a 12 year annuity that features beginning of the month $1,500 investments, and an interest rate of 8.25% compounded monthly. Investment B is a 10 year, annually compounded lump-sum investment with an interest rate of 7%.

How much money would you need to invest in B, two years from now (year 2) for it to be worth the same amount as investment A is 12 years from now (year 12)?

Reference no: EM132234887

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