If Bob deposits $5,000 at the beginning of each year for 10 years in an account paying 12% interest compounded annually, find the amount he will have at the end of the 10 years.

Because each deposit is made at the beginning of the year, this is an annuity due. Its value at the end of 10 years is $5,000 × [((1.12)^10 − 1) ÷ 0.12] × 1.12 = $98,272.92. Therefore, the correct choice is $98,272.92.

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