You have your choice of two investment accounts. Investment A is a 6-year annuity that features end-of-month $2,600 payments and has an interest rate of 9 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 11 percent, also good for 6 years.
Required:
How much money would you need to invest in B today for it to be worth as much as Investment A 6 years from now?