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Using the values below, answer the questions that follow: Amount of annuity Interest rate Deposit period (years) $500 9% 10 Calculate the future value of
- Using the values below, answer the questions that follow:
| Amount of annuity | Interest rate | Deposit period (years) |
|
| $500 | 9% | 10 |
- Calculate the future value of the annuity, assuming that it is
- An ordinary annuity. (0.5 marks)
- An annuity due. (0.5 marks)
- 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. (0.5 Marks)
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Selling Professional And Financial Services Handbook
Authors: Scott Paczosa, Chuck Peruchini
1st Edition
1118728149, 978-1118728147
