Which annuities ordinary or due are preferable and why

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Reference no: EM131490153

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?

Reference no: EM131490153

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