If you invest $100 a year for 25 years, making the payments at the end of the year, and the expected rate of return is 10% annually, how much will you have?
Now assume that you made the above payments at the beginning of the year instead of at the end of the year. How much will you have?
First of all, I recommend that you use either a financial calculator or excel to solve such questions. For the sake of explanation, I'll show you the formulas that you can use in excel to solve such problems. ...
The solution calculates the future value for the given scenario.