Calculate the future value of the annuity assuming that it, Finance Basics

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Calculate the future value of the annuity assuming that it

For each case in the accompanying table, answer the questions that follow.

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? Explainwhy.

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