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Business, 02.03.2020 23:22 Lizzy527663
Future value of an annuity For each case in the accompanying table, answer the questions that follow.
Case Amount of annuity Interest rate Deposit period (years)
A $2,500 8% 10
B 500 12 6
C 30,000 20 5
D 11,500 9 8
E 6,000 14 30
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 due—is preferable as an investment? Explain why.
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Future value of an annuity For each case in the accompanying table, answer the questions that follow...
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