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P5-21 Personal Finance Problem Time value: Annuities Marian Kirk wishes to select the better of two 10-year annui- ties. Annuity 1 is an ordinary annuity

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P5-21 Personal Finance Problem Time value: Annuities Marian Kirk wishes to select the better of two 10-year annui- ties. Annuity 1 is an ordinary annuity of $2,500 per year for 10 years. Annuity 2 is an annuity due of $2,300 per year for 10 years. a. Find the future value of both annuities 10 years from now, assuming that Marian can earn (1) 6% annual interest and (2) 10% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value after 10 years for both the (1) 6% and (2) 10% interest rates. c. Find the present value of both annuities, assuming that Marian can earn (1) 6% annual interest and (2) 10% annual interest

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