P5–19 Future value of an annuity For each case in the accompanying table, answer the questions that follow.

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(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why.

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B 500 C 30,000 Case Amount of annuity Interest rate Deposit period (years) AR $2,500 22 8% 10 12 6 20 5 D 11,500 9 8 E 6,000 14 30 30