Using the values below, answer the questions that follow.(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Amount of annuity

Interest rate

Deposit period (years)

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$9,000

11%

9

a.Calculate the future 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 annuity or annuity due is

preferable as an investment? Explain why.

a.The future value of the ordinary annuity is .....$(Round to the nearest cent.)

b.The future value of the annuity due is .....$ (Round to the nearest cent.)