When payments are made at the beginning of each period, you can treat them as an annuity due, a perpetuity, or an oridinary annuity.

You are planning to put $1,500 in the bank at the end of each year for the next five years in hopes that you will have enough money for a down payment on a condo. If you are investing at an annual interest rate of 6%, how much money will you have at the end of five yearsrounded to the nearest whole dollar?

$8,963

$8,456

$6,765

$10,147

Youve decided to deposit your money in the bank at the beginning of the year instead of the end of the year, but now you are making payments of $1,500 at an annual interest rate of 6%. How much money will you have available at the end of five yearsrounded to the nearest whole dollar?

$8,963

$6,274

$12,548

$8,456