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Annuity Due

An annuity-due is an annuity whose payments are made at the beginning of each period.

Because each annuity payment is allowed to compound for one extra period, the value of an annuity-due is equal to the value of the corresponding ordinary annuity multiplied by (1+r). Thus, the present value of an annuity-due can be calculated through the formula

see also
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  • Cash accumulation equation
  • ROI - Return on Investment - Rate of return
  • Equivalent annual cost
  • Ordinary Annuity

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    Fill the yellow fields to see the result in the green fields!
      A
    B
    C
    D
    E
    1          
    2 A is the periodic amount of the annuity    Dollar     
    3 r is the period interest rate       
    4 n is the number of periods    years     
    5          
    6 present value of an annuity-due PV    Dollar     
    7 future value of an of annuity-due FV    Dollar     
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    Charts:
    PV: change periodic amount : X=B2 / Y=B6 / X from: to:
    PV: change period interest : X=B3 / Y=B6 / X from: to:
    PV: change number of periods : X=B4 / Y=B6 / X from: to:
    see also: http://en.wikipedia.org/wiki/Annuity_%28finance_theory%29#Annuity_Due
    See also Ordinary Annuity
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    (source: Annuity (finance theory). (2006, September 26). In Wikipedia, The Free Encyclopedia. Retrieved 17:00, November 3, 2006, from http://en.wikipedia.org/w/index.php?title=Annuity_%28finance_theory%29&oldid=77946690)

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