Using the values pictured, answer the questions that follow.

a. Calculate the future value of the annuity, assuming that it is (1) An ordinart 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 as an investment?

a(1). The future value of the ordinary annuity is $___. (Round to the nearest cent)

a(2). The future value of the annuity due is $___. (Round to the nearest cent)

Amount of annuity $5,500 Interest rate 8% Deposit period (years) 5