LG 3 P5-20 Present value of an annuity Consider the following cases. Interest rate Case Amount of annuity A $ 12,000 B 55,000 700 D 140,000 E 22,500 12 20 5 10 Period (years) 3 15 9 7 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 annuity-ordinary or annuity due-is preferable? Explain why