A student is trying to calculate the value of an annuity and is frustrated $-$ he keeps getting a value that is higher than the correct answer. What might he be doing wrong?

His calculator is set for annuity due, in which payments are received at the beginning of the period rather than the end.

He is using the annuity formula when he

should be using the perpetuity formula.

His calculator is set for an ordinary annuity, in which payments are received at the end of the period rather than the beginning.

He has a growth rate that is higher than the interest rate.