Marian Kirk wishes to select the better of two 10-year annuities, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years.

1. Find the future value of both annuities at the end of year 10, assuming that

   Marian can earn (1) 10% annual interest and (2) 20% annual interest.

2. Use your findings in part a to indicate which annuity has the greater future

   value at the end of year 10 for both the (1) 10% and (2) 20% interest rates.

3. Find the present value of both annuities, assuming that Marian can earn (1)

   10% annual interest and (2) 20% annual interest.

4. Use your findings in part c to indicate which annuity has the greater present

   value for both (1) 10% and (2) 20% interest rates.

5. Briefly compare, contrast, and explain any differences between your findings

   using the 10% and 20% interest rates in parts b and d