Two investment accounts, You have your choice of two

Two investment accounts

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Reference no: EM131184979

You have your choice of two investment accounts. Investment A is a 14-year annuity that features end-of-month $1,200 payments and has an interest rate of 6.9 percent compounded monthly. Investment B is a 6.4 percent continuously compounded lump sum investment, also good for 14 years.

How much money would you need to invest in B today for it to be worth as much as Investment A 14 years from now?

Amount needed?

Reference no: EM131184979

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