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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RELATED TERMS

Annuity
A financial product that pays out a fixed stream of payments ... 
Annuity Table
A method for determining the present value of a structured series ... 
Present Value Of An Annuity
The current value of a set of cash flows in the future, given ... 
Future Value Of An Annuity
The value of a group of payments at a specified date in the future. ... 
Annuitization Method
A type of annuity distribution structure that gives the annuitant ... 
Payout Phase
The phase in an annuity during which payments are made to the ...
RELATED FAQS

For what types of financial instruments would I want to calculate the present value ...
Because the present value of an annuity formula relies on a consistent interest rate and identical payments for a set period ... Read Full Answer >> 
What is the utility function and how is it calculated?
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >> 
What exact information is included in the interest rate when calculating the present ...
When calculating the present value of an annuity, the interest rate percentage is the rate at which future payments are discounted ... Read Full Answer >> 
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 >> 
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 >> 
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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