Peter Deposits $500 at the END of Every Month for 3

question 130

Multiple Choice

Peter deposits $500 at the END of every month for 3 years in a savings account. The account pays 12% interest, compounded monthly. Peter calculates that the future value of the ordinary annuity is $21,538.44. What would be the future value if deposits were made at the BEGINNING of each period rather than the END? (Calculate the future value by formula)

• A) $21,753.83
• B) $25,734.44
• C) $22,273.44
• D) $22,349.85

---

Definitions:

Gee's Bend

A rural community in Alabama known for its rich history and unique quilting tradition among African American residents.

African American Women

Women of African descent living in the United States, encompassing a diverse group with a rich heritage and significant contributions to American culture and history.

Quilts

Fabric creations comprised of multiple layers sewn together, often featuring intricate patterns or designs and used for warmth or as decorative items.

Native American Headdresses

Sacred and culturally significant items worn by some Native American leaders and warriors, embodying respect, honor, and accomplishments.