Question: Future Value of an annuity. Using the values below, answer the questions that follow: Amount of Annuity = $7500.00 Interest Rate= 8% Deposit Period= 11yrs.

Future Value of an annuity. Using the values below, answer the questions that follow:

Amount of Annuity = $7500.00

Interest Rate= 8%

Deposit Period= 11yrs.

A. Calculate the future value assuming that (1) its an ordinary annuity (2) an annuity due *round answer to the nearest cent

B. Compare your findings in part a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment?

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