ORDINARY ANNUITY VS ANNUITY DUE

Mar 28, 12
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  • There is a difference between an ordinary annuity and one due. An annuity is .
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  • The payments or receipts occur at the end of each period for an ordinary annuity
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  • Note: Each rent or payment compounds (interest added) one more period in a PV
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  • These are: (1) ordinary annuity, (2) annuity due, (3) deferred annuity, and (4)
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  • In an ordinary annuity, the payments are fed into the investment at the END of the
  • The opposite of an ordinary annuity is an annuity due, where payments are made

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