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Using the values​ below, answer the questions that follow: Amount of annuity Interest rate Deposit period​...

  1. Using the values​ below, answer the questions that follow:

Amount of annuity

Interest rate

Deposit period​ (years)

​$500

9​%

10
  1. Calculate the future value of the​ annuity, assuming that it is
    1. ​An ordinary annuity.
    2. ​An annuity due.
  1. Compare your findings in parts a​(1) and a​(2). All else being​ identical, which type of annuity—ordinary or annuity due—is preferable as an​ investment? Explain why.

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ekkarill92 answered 1 year ago
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