Q4 Using the values below, answer the questions that follow (1mark) Amount of annuity $500 Interest rate 9 N 10 years Calculate the future value of the annuity, assuming that it is An ordinary annuity An annuity due Compare your findings in parts a (1) and a (2) All else being identical, which type of annuityordinary or annuity dueis preferable as an investment Explain why

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Question: Q4. Using the values below, answer the questions that follow: (1mark) Amount of annuity: $500 Interest rate: 9% N=10 years Calculate the future value of

Q4. Using the values below, answer the questions that follow: (1mark)

Amount of annuity: $500

Interest rate: 9%

N=10 years

Calculate the future value of the annuity, assuming that it is
1. An ordinary annuity.
2. An annuity due.

Compare your findings in parts a(1) and a(2). All else being identical, which type of annuityordinary or annuity dueis preferable as an investment? Explain why.

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