Q4. Using the valuesbelow, answer the questions that follow:

Amount of annuity: $500 Interest rate: 9% N=10 years

1. Calculate the future value of the annuity, assuming that it is
   1. An ordinary annuity.
   2. An annuity due.

2. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuityordinary or annuity dueis preferable as an investment? Explain why.