Future value of an annuity

Amount of Annuity	Interest Rate	Deposit Per Years
$6,500	6%	7

a.Calculate the future 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 annuitylong dashordinary or annuity due long dashis referable as an investment? Explain why.

a. (1) The future value of the ordinary annuity is

$(Round to the nearest cent)

When solving for the future value of an annuity due using an Excel spreadsheet, you will need to enter the values of Rate, Nper, Pv, Pmt, and Type into the future value function . Please provide the Excel spreadsheet formula to use for the computation of this problem.