6. Future value of annuities There are two categories of cash flows: single cash flows, referred to as "lump sums," and annuities. Based on your understanding of annuities, answer the following questions Which of the following statements about annuities are true? Check all that apply An annuity due earns more interest than an ordinary annuity of equal time. An annuity due is an annuity that makes a payment at the end of each period for a certain time period Ordinary annuies make fixed payments at the end of each period for a certain time period. A perpetuity isa constant, infinite stream of equal cash flores that can be thought of as an infinite annuity. Which of the following is an example of an annuity? O A job contract that pays an hourly wage based on the work done on a particular day O A job contract that pays a regular monthly salary for three years Katie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to save $1,270 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 4% annual interest. Katie's savings are an example of an annuity. If Katie decides to renovate her kitchen, how much would she have in her savings account at the end of five years? $5,846.92 O $7,153.88 O $6,878.73 O $5,653.81 If Katie deposits the money at the beginning of every year and everything else remains the same, she will save by the end of five years