Asked by
Marcus Cawthorne
on Dec 02, 2024
Verified
An annuity due will have a smaller present value than a normal annuity.
Annuity Due
An annuity in which the payments are made at the beginning of each period, as opposed to at the end.
Present Value
The value today of a future payment or series of payments, discounted at a specified interest rate.
Normal Annuity
An annuity where payments are made at the end of each period.
- Acquire knowledge about the concepts and features of annuities, perpetuities, and amortized loans.
- Distinguish between an annuity due and an ordinary annuity.
Verified Answer
GL
Learning Objectives
- Acquire knowledge about the concepts and features of annuities, perpetuities, and amortized loans.
- Distinguish between an annuity due and an ordinary annuity.