Unformatted text preview: If you can earn 14% on your funds, which offer would you accept? $900 $150 x 6.61 (FV of an annuity) = $991.50 In this case I would choose $150 at 14% because I would be received $91.50 more. Why are your answers different? Because the compounded money at 14% adds up much quicker for the annuity....
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- Spring '12