Annuity Due: What is the Difference? When calculating the present value (PV) of an annuity, one factor to consider is the timing of the payment. Ordinary Annuity→ Cash Flows Received at End of Period Annuity Due→ Cash Flows Received at Beginning of Period The term “annuity due” means ...
Question: aFind the PV of an ordinary annuity that pays $1,000 each of the next 4 years if the interest rate is 13%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ fill ...
The contribution presents the way how to apply linear difference equations in the field of financial mathematics. We focus on calculating the future value and the present value of annuities when we distinguish two basic types of annuities - an annuity due and an ordinary annuity. We also demonstr...