Present value of an annuityConsider the following case.

Amount of annuity:

$41,000

Interest rate:

8%

Period (years)

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 annuitylong dashordinary

or annuity duelong dashyields

a higher present value? Explain why.

(what is A, and B) (Both A and B round to the nearest cent)