a.Calculate the present 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 annuityordinary or annuity dueis preferable? Explain why.

Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity S53,000 Interest rate 12% 10 a. Calculate the present 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 The present value of the ordinary annuity is Round to the nearest cent.)