Question: Future value of an annuity Using the values below.answer the questions that follow. (Click on the icon located on the top right comer of the
Future value of an annuity Using the values below.answer the questions that follow. (Click on the icon located on the top right comer of the datatable below in order to copy its contents into a spreadsheet) Interest rate Deposit period (years) $5.500 Amount of annuity a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due b. Compare your findings in parts a nd aiz). All is being identical, which type of annuity-ordinary or annuly due preferable as an investment? Explain why a. (1) The future value of the ordinary annuity is S Round to the nearestent.) (2) The future value of the annuity due is (Round to the nearest cont.) b. Compare your findings in parts aft) and a 2). All also being identical, which type of annuity is preferable as an investment? (Select the best answer below. Ordinary annuity, because it yields a greater future value Annuity due, because it yields a greater future value O Click to select your answers)
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