5. With an annuity due, each annuity occurs at the beginning of each period rather than at the end of the period. 6. In either case, the reason is the same: to compare values on alternative investments and to recognize that the value of a dollar received today is not the same as that of a dollar received at some date. 7. A compound annuity involves depositing or investing a(n) sum of money at the end of each year for a certain number of years and allowing it to grow.