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5. Consider two (2) annuities. A $1,000 monthly annuity over 10 years with a 6.00% interest...

5.

Consider two (2) annuities.

A $1,000 monthly annuity over 10 years with a 6.00% interest rate.

A $1,000 monthly annuity due over 10 years with a 6.00% interest rate.

a.

Calculate the Present Value of both annuities.

b.

Calculate the Future Value of both annuities.

c.

Which annuity would you choose to pay?

d.

Which annuity would you choose to receive

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Calculate present value and future value as follows:

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