Annuity Due

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DEFINITION of 'Annuity Due'

An annuity whose payment is to be made immediately, rather than at the end of the period.

INVESTOPEDIA EXPLAINS 'Annuity Due'

An annuity due requires payments to be made at the beginning of the period. For example, in many lease arrangements, the first payment is due immediately and each successive payment must be made at the beginning of the month.

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  3. What exact information is included in the interest rate when calculating the present ...

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  4. How do you calculate a present value of annuity using Excel?

    Calculating the present value of an annuity using Microsoft Excel is fairly straightforward if you know the interest rate, ... Read Full Answer >>
  5. What is the difference between the present value of an annuity and the future value ...

    The present value of an annuity represents the sum that must be invested now to guarantee a desired payment amount in the ... Read Full Answer >>
  6. Why would I need to calculate the present value of an annuity?

    To calculated the present value of an annuity, all that is needed is the interest rate, payment amount and number of periods ... Read Full Answer >>
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