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  3. 1. consider the following five annuities: a. b. c.

1. Consider the following five annuities: A. B. C. D. E. annual $ amount 12,000...

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1. Consider the following five annuities: A. B. C. D. E. annual $ amount 12,000 55,000 700 140,000 22,500 annual rate 7 12 20 5 10 number of years 3 15 9 7 5 For each of the five annuities (A - E), calculate the present value (PV) twice once as a regular (deferred) annuity and once as an annuity due. 2. Refer to your answers to question #1. All else being equal, which type of annuity (deferred or due) would be preferable. Why

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