Question: 6. What is the difference between an ordinary annuity and an annuity due? How does this difference affect the present value of two otherwise identical

6. What is the difference between an ordinary annuity and an annuity due? How does this difference affect the present value of two otherwise identical annuities? 7. You want to invest $5,000 for 6 years. Would you prefer to earn a 4 percent rate of return compounded monthly or a 4 percent rate of return compounded annually? Justify your answer. 8. Should the law be changed to require lenders to report the effective annual rate (EAR), rather than the annual percentage rate (APR), to potential borrowers

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