Calculate the future value of the annuity assuming that it, Financial Management

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Calculate the future value of the annuity assuming that it

Amt of Annuity: $7,000 Interest Rate: 7% Deposit Period (years): 12

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 annuitylong dash—ordinary or annuity duelong dash—is preferable as an investment? Explain why.

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Financial Management: Calculate the future value of the annuity assuming that it

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Financial Management: Calculate the future value of the annuity assuming that it

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