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pls solve Present value of an annuity Consider the following cases. Case Amount of annuity Interest rate Period (years) A B D E $ 12,000
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Present value of an annuity Consider the following cases. Case Amount of annuity Interest rate Period (years) A B D E $ 12,000 55,000 700 140,000 22,500 7% 12 20 5 10 3 15 9 7 5 a. Calculate the present value of the annuity assuming that it is (1) an ordinary due. (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 dueis preferable? Explain whyStep by Step Solution
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