Question: Explain the difference between an ordinary annuity and an annuity due . 2. Illustrate an ordinary and annuity due using a time-line. 3. Calculate the

Explain the difference between an ordinary annuity and an annuity due.

2. Illustrate an ordinary and annuity due using a time-line.

3. Calculate the the highest price an investor would pay for an ordinary annuity that pays $11,000 per year for 5 years. Assume that this investor requires an 8% annual return on their investment.

4. Recalculate the scenario from part c above for an annuity due.

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