a. Calculate the present value of the annuity assuming that it is (1) Ar ordinary aninuity (2) An anmity due b. Compare your findings in parts a(1) and a(2) Nl else being identical, which type of annuity ordinary of annuity due-is preferable? Explain wiy Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an annuity, that will provide you with $5,100 at the end of each year for the next 20 years. If you don' purchase this annuity, you can invest your money and earn a return of 4%. What is the most you would pay for this annuity tight now? Ignoring taxes, the most you would pay for this annuity is: (Round to the nearest cent) end of each of the next 30 years (that is, 52,850,000 over 30 years) of as a single amotint of 31,565,000 paid immediately b. Would your decision in part a change if you could eam 5% rather than 3% on your investersents ower the nex 30 yeas? Why? C. A approximately what interest rate would you be indifferent between the two options