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Please show how its done using the annuity due formula! 12. You have a chance to buy an annuity due that pays $5,000 at the

Please show how its done using the annuity due formula! image text in transcribed
12. You have a chance to buy an annuity due that pays $5,000 at the beginning of each year for 5 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity due? a. $20,701 b. $21,791 c. $22,938 d. $24,085 e. $25,289

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