P519 Future value of an annuityFor each case in the accompanying table, answer the questions that follow.

Case	Amount of annuity	Interest rate	Deposit period (years)
A	$ 2,500	8%	10
B	500	12	6
C	30,000	20	5
D	11,500	9	8
E	6,000	14	30

Calculate the future value of the annuity, assuming that it is

(1) An ordinary annuity.

(2) An annuity due.

Compare your findings in parts a(1) and a(2). All else being identical, which type of annuityordinary or annuity dueis preferable? Explain why.

Problem 5-19:
1. Annuity
FUTURE VALUE OF AN ANNUITY
		A	B	C	D	E
Annual payment		2,500.00	500.00	30,000.00	11,500.00	6,000.00
Interest Rate Per Year		8%	12%	20%	9%	14%
Number of Years		10	6	5	8	30
Future value
		FUTURE VALUE OF AN ANNUITY DUE
2. Annuity due
FUTURE VALUE OF AN ANNUITY DUE
		A	B	C	D	E
Annual payment		2,500.00	500.00	30,000.00	11,500.00	6,000.00
Interest Rate Per Year		8%	12%	20%	9%	14%
Number of Years		10	6	5	8	30
Future value