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Q: What are Mathematical calculations for annuity due?
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What The differences between ordinary annuity and annuity due?

ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period


What The difference between ordinary annuity and annuity due?

ordinary annuity we paid at the end of the period annuity due we paid at the begging of the period


What gains more interest an ordinary annuity or an annuity due?

ordinary annuity


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What is the difference between ordinary annuity and annuity due?

In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.


Where could I get an annuity calculator?

There is a simple but accurate online annuity calculator at http://www.bankrate.com/calculators/investing/annuity-calculator.aspx. Just enter your information into the form, and the website will take care of all the calculations for you.


What is the difference between ordinary annuities and annuities due?

An annuity due is an annuity where the payments are made at the beginning of each time period; for an ordinary annuity, payments are made at the end of the time period. *an annuity due of (n) periods is equal to an ordinary annuity of (n-1) periods plus the payment.


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