accounts. Investmént A is a 12-year annuity that features end-of-month $1,000 payments and has an interest rate of 7:7 percent compounded monthly Investment B is an 7.2 percent continuously compounded lump-sum investment, also good for 12 years. How much money would you need to invest in B today for it to be worth as much as lInvestment A 12 years from now? (Do not round intermediate
accounts. Investmént A is a 12-year annuity that features end-of-month $1,000 payments and has an interest rate of 7:7 percent compounded monthly Investment B is an 7.2 percent continuously compounded lump-sum investment, also good for 12 years. How much money would you need to invest in B today for it to be worth as much as lInvestment A 12 years from now? (Do not round intermediate
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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