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

Calculate the future value of the annuity assuming that it

Use the following information to answer the questions:

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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