When equal payments are made at fixed intervals for a specified number of periods, you can treat them asan annuity .

You are planning to put $3,000 in the bank at the end of each year for the next seven years in hopes that you will have enough money for a down payment on a house. If you are investing at an annual interest rate of 5%, how much money will you have at the end of seven yearsrounded to the nearest whole dollar?

$25,647

$29,311

$19,541

$24,426

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 $3,000 at an annual interest rate of 5%. How much money will you have available at the end of seven yearsrounded to the nearest whole dollar?

$24,426

$25,647

$35,906

$17,953