You have your choice of two investment accounts. Investment A isa 14-year annuity that features end-of-month $1,850 payments andhas an interest rate of 8.2 percent compounded monthly. InvestmentB is a 7.7 percent continuously compounded lump sum investment,also good for 14 years.
How much money would you need to invest in B today for it to beworth as much as Investment A 14 years from now? Amount needed:$__________
The xaxue ax xxe end ox period xxox ixxexxxexx A would xe = 1850* FVIFA (168 years , .6833%)
= 1850 *3.1340