You Have Your Choice of Two Investment Accounts

question 104

Multiple Choice

You have your choice of two investment accounts.Investment A is a 5-year annuity that features end-of-month $2,500 payments and has an interest rate of 11.5 percent compounded monthly.Investment B is a 10.5 percent continuously compounded lump sum investment,also good for five years.How much would you need to invest in B today for it to be worth as much as investment A five years from now?

• A)$108,206.67
• B)$119,176.06
• C)$124,318.08
• D)$129,407.17
• E)$131,008.15

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Definitions:

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A theory that explains how individuals prioritize their social contacts based on their perceived remaining time in life, focusing more on emotionally satisfying relationships as they age.

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The comprehensive perspective from which individuals view and interpret the world and their place in it.

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