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You have the opportunity to invest in either of two annuities. Annuity X is an annuity due that makes 6 equal annual payments of $9,000.
You have the opportunity to invest in either of two annuities. Annuity X is an annuity due that makes 6 equal annual payments of $9,000. Annuity Y is an ordinary annuity that makes 6 equal annual payments of $10,000. Assume that you can earn 15% on your investment.
(1) find the future value after 6 years for both annuities
(2 ) use your finding in part (1) to indicate which annuity is more attractive. Why?
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