You have your choice of two investments accounts. Investment A is a 15 year annuity that features

Question:

You have your choice of two investments accounts.
Investment A is a 15 year that features end of month $1,150 payments and has an interest rate of 6% compound monthly.

Investment B is a 7% annually compounded lump sum investment, also good for 15 years. How much money would you need to invest in B today for it to be worth as much as investment A 15 years from now?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...