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Subject 4. The Future Value and Present Value of a Series of Equal Cash Flows (Ordinary Annuities, Annuity Dues, and Perpetuities) sent value of a regular annuity
Annuity due has a first cash flow that is paid immediately (indexed at t = 0). In other words, the payments occur at the beginning of each period.
<span>Future value of an annuity due
This consists of two parts: the future value of one annuity payment now, and the future value of a regular annuity of (N -1) period. Calculate the two parts and add them together. Alternatively, you can use this formula:
Note that, all other factors being equal, the future value of an annuity due is equal to the future value of an ordinary annuity multiplied by
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