The difference between the terminal value of the two kinds of annuity payments can be substantial as the number of years increases or the interest rate rises. Consider an individual retirement account (IRA) in which you invest $2,000 annually for 20 years. If the deposits are made at the end of the year (an ordinary annuity) and the rate of return is 7 percent, the terminal amount... $2000(40.995)=$81,990