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 $15,000 Interest rate 8% Period (years) 14 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 a(2). All else being identical, which type of annuity-ordinary or annuity dueis preferable? Explain why The present value of the ordinary annuity is sl l. (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 lo Annuity due, because all else being identical, it will yield a higher present value. Ordinary annuity, because all else being identical, it will yield a higher present value