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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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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 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.


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

ordinary annuity


Differentiate between ordinary annuity and annuity due?

In an ordinary annuity, the annuity 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.


What is difference between primary and secondary card holder?

The major difference is that the Primary Account holder is responsible for all the amounts due on both the Primary Card and the Secondary Card.

Related Questions

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 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 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.


Difference between ordinary water and heavy water?

Heavy water contains deuterium, an isotope of hydrogen with an extra neutron, whereas ordinary water contains only the lighter hydrogen isotope. Heavy water is used in certain industrial and scientific applications, such as nuclear reactors, due to its unique properties. The density and boiling point of heavy water are higher than those of ordinary water.


Distinguish between bankers debt and ordinary commercial debt?

a)Name of amount due b)demand of repayment


What is the correct term for level sets of frequent consistent cash flows?

The correct term for level sets of frequent consistent cash flows is "annuity." An annuity represents a series of equal payments made at regular intervals over time, and it can be used for various financial products, such as retirement plans or loans. The cash flows can be either ordinary annuities, where payments are made at the end of each period, or annuities due, where payments are made at the beginning.


What is the difference in height between an ordinary thunderstorm and a severe thunderstorm?

Severe thunderstorms can reach heights up to 60,000 feet, while ordinary thunderstorms typically reach heights of around 30,000 to 40,000 feet. This difference in height is due to the stronger updrafts found in severe thunderstorms, allowing them to build higher into the atmosphere.


What is a differential cash flow?

Differential cash is the difference in cash due between selecting between different alternative options or projects.


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

ordinary annuity


What is the pressure difference formula and how can it be used to calculate the difference in pressure between two points?

The pressure difference formula is P gh, where P is the pressure difference, is the density of the fluid, g is the acceleration due to gravity, and h is the height difference between the two points. To calculate the pressure difference between two points, you can use this formula by plugging in the values for the density of the fluid, acceleration due to gravity, and the height difference between the two points.


Difference between laser and ordinary light?

Laser lights are spectrally pure, i.e. one wavelength, and they are coherent, i.e. all phota in phase. As a result, the beam of a laser light tends to stay as beam, and not diverge due to scattering.


What was the penny farthings originily called?

The penny-farthing was originally called the "ordinary" or "ordinary bicycle." This name distinguished it from the safety bicycle, which became popular later. The term "penny-farthing" itself emerged in the late 19th century, referencing the British coins, the penny and the farthing, due to the large front wheel and small rear wheel resembling the size difference between the two coins.