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?