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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) u 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 (1 + r).
<span>Present value of an annuity due
This consists of two parts: an annuity payment now and the present value of a regular annuity of (N - 1) period. Use the above formula to calculate the second part and add the two parts together. This process can also be simplified to a formula:
Note that, all other factors being equal, the present value of an annuity due is equal to the present value of an ordinary annuity multiplied
last interval [days]
repetition number in this series
scheduled repetition interval
last repetition or drill
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