Answer the following

Amount of annuity $12,000 Interest rate 7% Period (years) 3 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. ... b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity is preferable? (Select the best answer below.) Ordinary annuity, because all else being identical, it will yield a higher present value. O Annuity due, because all else being identical, it will yield a higher present value