(Related to Checkpoint 6.2) (Present value of an ordinary annuity) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent who believes that Nicki is an older woman who is ready to retire from teaching He talks to her about several annuties that she could buy that would guarantee her a fixed annual income. The annuites are as follows Nicki could earn 11 percent on her money by placing it in a savings account Alternatively, she could place it in any of the above annuities. Which annuities in the table above, if any, will earn Nicki a higher return than investing in the savings account earning 11 percent? a. If Nicki could earn 11 percent on her money, what is the present value of annuity A with $8,500 payments per year and 12 years duration? (Round to the nearest cent) If Nicki could earn 11 percent on her money by placing it in a savings account, should she place it instead in annuity A? (Select the best choice) below.) A. Yes Nicki should place her money in annuity A because the present value of the annuity is greater than the initial payment. B. No. Nicki should not place her money in annuity A because the present value of the annuity is smaller than the initial payment. b. If Nick could eam 11 percent on her money, what is the present value of annuty B with $7,000 payments per year and 25 years duration? (Round to the nearest cont) II Nicki could eam 11 percont on her money by placing A in a savngs account, should she place it insfead in annuty B? (Select the best choice below) 8. Yes. Nichi should place her money in annuty B because the present value of the annuity is greater than the intial payment. c. If Nicki could earn 11 percent on her money, what is the present value of annuity C with $8,000 payments per year and 20 years durafion? (Round to the nearest cent) If Nicki could earn 11 percent on her money by placing it in a savings account, should she place it instead in annuity C? (Select the best choice below) A. No. Nicki should not place her money in annuity C because the present value of the annuity is smaller than the inital payment. B. Yes. Nicki should place her money in annuity C because the present value of the annuify is greater than the inital payment