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Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon located on the top-right corner of
Future value of an annuity Using the values below, answer the questions that follow. (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 $5,000 Interest rate 9% a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. Deposit period (years) 10 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 as an investment? Explain why.
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