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3 Present value of an annuity Consider the following case. (Cick 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 Interest rate Period (years) $55,000 4% 2. Calculate the present value of the annuty assuming that it is (1) An ordinary annuity (2) An annuity due b. Compare your findings in parts a( 1) and a(2). All eite being identical, which type of annulyordinary or annully duo-s preferable? Explain why GHD The present value of the ordinary annuity is $(Round to the nearest cent) The present value of the annuity due is $(Round to the nearest cent) b. Compare your findings in parts (1) and (2). Ali ette being identical, which type of annuity in preterable? (Select the best answer below) Ordinary annuity, because all else being identical, it will yield a higher prosent value Annuity due, because all else being identical, it will yield a higher present value