Q1: Suppose you want to purchase an annuity and you are offered two options. The first option is an ordinary annuity which provides a 3,000 euro per year payment for three years at the end of each year. The second option is an annuity due which provides the same payment for three years but at the beginning of each year, rather than at the end. If the interest rate is 8%, calculate the present value for each today, and explain the numerical difference in your answers.