Scenario:

As the owner of a  vinyl fencing company, the company has decided to make plans for two large  purchases in the next 3 to 5 years to achieve our business goals.  Our first purchase is to expand our vinyl  fence company in the future, and purchase a new warehouse facility.

Two insurance company has offered two  very attractive investment options, an ordinary annuity and an annuity due,  both compounding quarterly and paying 8% annual interest over a 5-year period. Our  5-year budget includes saving $2,500.00 each quarter.  

To evaluate which option will  benefit the business most, the company has evaluated both annuity options by  calculating the future value of each option and explain how the investment will  help you to carry out your goals.