Present value of an annuityConsider 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)
$39,000	11%	11

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.

The present value of the ordinary annuity is

$nothing.

(Round to the nearest cent.)