You set up a college fund in which you pay $2500 each year at the beginning of the year. How much money (in S) will you have accumulated in the fund after 25 years, if your fund earns 12% compounded annually? Your Answer: You are comparing two annuities. Annuity A pays $100 at the beginning of each month for 10 years. Annuity B pays $100 at the end of each month for 10 years. The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information? 1) Annuity A has a higher future value and a higher present value than Annuity B. 2) Annuity B has both a higher present value and a higher future value than Annuity A. 3) Annuity B will pay one more payment than Annuity A will. 4) The present value of Annuity A is equal to the present value of Annuity B. 5) The future value of Annuity A is greater than the future value of Annuity B