Question: answer number 2 a b and c On the basis of your findings in parts, which bank should Ms. Martin deal 2. Future values of

 answer number 2 a b and c On the basis of

answer number 2 a b and c

On the basis of your findings in parts, which bank should Ms. Martin deal 2. Future values of annuities. Ramesh Abdul wishes to choose the better of two equally costly cash flow streams: annuity X and annuity Y. X is an annuity due with a cash flow of $9,000 for each of 6 years. Y is an ordinary annuity with a cash inflow of $10,000 for each of 6 years. b. c. Assume that Ramesh can earn 15% on his investments. On a purely subjective basis, which annuity do you think is more attractive? Why? Find the future value at the end of year 6, PVA6, for both annuity and annuity Y. Use your finding in part b to indicate which annuity is more attractive. Why? Compare your finding to your subjective response in part a

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