You have your choice of two investment accounts. Investment A is a 15-year annuity that features end-of-month

Question:

You have your choice of two investment accounts. Investment A is a 15-year annuity that features end-of-month $1,175 payments and has a rate of 6.4 percent compounded monthly. Investment B is a lump-sum investment with a 7 percent continuously compounded rate, 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,...

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