Question
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
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) $2, 500 11% 8
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 or annuity is preferable as an investment? Explain why.
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
