Marian Kirk wishes to select the better of two 8-year annuities.

Annuity 1 is an ordinary annuity of $1,530 per year for 8 years. Annuity 2 is an annuity due of $1,470 per year for 8 years.

a.Find the future value of both annuities at the end of year 8, assuming that Marian can earn

(1) 3% annual interest &

(2) 6% annual interest.

b.Use your findings in part a to indicate which annuity has the greater future value at the end of year 8 for both the(1) 3% and(2) 6% interest rates.

c.Find the present value of bothannuities, assuming that Marian can earn (1) 3% annual interest and(2) 6 % annual interest.

d.Use your findings in part c to indicate which annuity has the greater present value for both the(1) 3% and(2) 6% interest rates.

e. Brieflycompare, contrast, and explain any differences between your findings using the 3% and 6% interest rates in parts b and d.