Question: Kang Co. is considering a plan to save $4,500 a month for the next five years to build a safety net for recessionary periods. The

Kang Co. is considering a plan to save $4,500 a month for the next five years to build a safety net for recessionary periods. The money will be set aside in a savings account that pays 4.35 percent annual rate, with interest compounded monthly.Kang plans to deposit the first $4,500 today.

1.What type of annuity is given in this question? (ordinary annuity and an annuity due)

Show calculations of annuity by formula.You must explain the nature of adjustment made for type of annuity.

2.Show calculation of annuity by excel or financial calculator

3.Show calculation of equivalent lump sum by formula and excel

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