Present value of an annuityConsider the following case.

Amount of annuity	Interest rate	Period (years)
$47,000	6%	10

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 annuityordinary or annuity dueis preferable? Explain why.

Part 1

The present value of the ordinary annuity is

$____(Round to the nearest cent.)