Present value of an annuity Consider the following cases.

a$.$ Calculate the present value of the annuity, assuming that it is

$(1)$ An ordinary annuity.

$(2)$ An annuity duc.

b$.$ Compare your findings in parts a$(1)$ and a$(2).$ All else being identical, which type

of annuity$-$ordinary or annuity due$-$is preferable? Explain why.Present value of an annuity Consider the following cases.

a$.$ Calculate the present value of the annuity, assuming that it is

$(1)$ An ordinary annuity.

$(2)$ An annuity duc.

b$.$ Compare your findings in parts a$(1)$ and a$(2).$ All else being identical, which type

of annuity$-$ordinary or annuity due$-$is preferable? Explain why.