Calculate the future value of the annuity assuming that it is (1) an ordinary annuity (2) an annuity due. Comparing the two types of annuities, all else equal, which type is more preferable? Why? Amount of annuity Interest rate Deposit period (years) $500 12% 6

Ordinary annuity = 4545, annuity due = 4058 , ordinary annuity is better because it discounts for one less year

Ordinary annuity = 4058, annuity due = 4545, annuity due is better because it discounts for one less year.

Ordinary annuity = 4058, annuity due = 4545, annuity due is better because it compounds for one more year.

Ordinary annuity = 4545, annuity due = 4058 , ordinary annuity is better because it compounds for one more year.