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Amount of annuity 7,000 Interest rate 7% Deposit period (years) 7 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary...

Amount of annuity 7,000

Interest rate 7%

Deposit period​ (years) 7


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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