What is the difference in future value between savings in which $3,000 is deposi

Question

What is the difference in future value between savings in which $3,000 is deposited each year at the beginning of the period and the same amount deposited at the end of the period? Assume an interest rate of 8 percent and that both are due at the end of 19 years.

Fill in your answers (L-R) in the following order:

(a) Annuity Due (beginning of period) = ______

(b) Ordinary Annuity (end of period) = ______

(c) Difference between "ordinary annuity" and "annuity due" = _______

(Round your answers to the nearest whole dollar. Omit the comma and "$" sign in your responses.)

Explanation / Answer

Annuity Due (beginning of period) =134286

Ordinary Annuity (end of period) =124339

Difference between "ordinary annuity" and "annuity due" =9947

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