Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Period (years) $59,000 5% 8 a. Calculate the present 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 (2). All else being identical, which type of annuity-ordinary or annuity dueis preferable? Explain why. The present value of the ordinary annuity is $. (Round to the nearest cent.) The present value of the annuity due is $ (Round to the nearest cent.) b. Compare your findings in parts a(1) and a (2). All else being identical, which type of annuity is preferable? (Select the best answer below.) O Ordinary annuity, because all else being identical, it will yield a higher present value. O Annuity due, because all else being identical, it will yield a higher present value