P5-19 Future value of an annuity For each case in the accompanying table, answer the questions that follow. Case ADCDE B Annuity payment Interest rate $ 2,500 500 30,000 11,500 6,000 8% 12 20 9 14 Annuity length (years) 10 6 30 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 annuity-ordinary or annuity due-is preferable? Explain why.

P5-19 Future value of an annuity For each case in the accompanying table, answer the questions that follow. a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuiry. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which ryx of annuity-ordinary or annuity duc-is preferable? Explain why