Time value-Annuities Personal Finance Problem Marian Kirk wishes to select the better of two 8-year annuities. Annuity 1

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Time Value Annuities Personal Finance Problem Marian Kirk Wishes To Select The Better Of Two 8 Year Annuities Annuity 1 1 (53.21 KiB) Viewed 34 times

Time value-Annuities Personal Finance Problem Marian Kirk wishes to select the better of two 8-year annuities. Annuity 1 is an ordinary annuity of $1,790 p year for 8 years. Annuity 2 is an annuity due of $1,730 per year for 8 years. a. Find the future value of both annuities at the end of year 8, assuming that Marian can earn (1) 3% annual interest and (2) 6% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 8 for both the (1) 3% and (2) 6% interest rates.. C. Find the present value of both annuities, assuming that Marian can earn (1) 3% annual interest and (2) 6% annual interest. d. Use your findings in part c to indicate which annuity has the greater present value for both the (1) 3% and (2) 6% interest rates. e. Briefly compare, contrast, and explain any differences between your findings using the 3% and 6% interest rates in parts b and d. a. The future value of Annuity 1 at 3% interest is $ (Round to the nearest cent.)