FOR EACH CASE IN THE ACCOMPANYING TABLE, ANSWER THE QUESTIONS THAT FOLLOW:
Case Amount of Annuity Interest Rate Deposit Period (years) Ord. Ann. Ann. Due
5A $5,000 6% 20
6B $1,000 14% 12
7C $60,000 16% 10
8D $23,000 11% 16
9E $12,000 10% 15
1. Calculate the FUTURE value of each annuity assuming that it is
1- An Ordinary Annuity
2- An Annuity Due
2. Which annuities Ordinary or Due are preferable and why?