(1) The future value of the ordinary annuity is $22713.1822713.18. (Round to the nearest cent.) (2) The future value of the annuity due is $25211.6325211.63. (Round to the nearest cent.) b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity is preferable as an investment? (Select the best answer below.) Ordinary annuity, because it yields a greater future value. Annuity due, because it yields a greater future value.

Annuity due, because it yields a greater future value.

Explanation:

Given that the future value of the ordinary annuity is $22713.1822713.18

Rounded off to the nearest cent we get

22713.18 $ from ordinary equity

The future value of the annuity due is $25211.6325211.63.

Rounded off to the nearest cent we get

25211.63 $

Assuming all else are identical , we prefer to select the one which gives more future annuity.

On comparison we find that annuity gives more future value.

So answer is

Annuity due, because it yields a greater future value.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%