Annuity Due


DEFINITION of 'Annuity Due'

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


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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.

  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Annuity Table

    A method for determining the present value of a structured series ...
  3. Present Value Of An Annuity

    The current value of a set of cash flows in the future, given ...
  4. Future Value Of An Annuity

    The value of a group of payments at a specified date in the future. ...
  5. Immediate Payment Annuity

    An annuity contract that is purchased with a single lump-sum ...
  6. Lease

    A legal document outlining the terms under which one party agrees ...
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  1. 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 >>
  2. How liquid are variable annuities?

    Variable deferred annuities and variable immediate annuities are not considered liquid. Variable deferred annuities carry ... Read Full Answer >>
  3. Do variable annuities have RMDs?

    Variable annuities are not subject to required minimum distributions (RMDs) unless they are held in qualified plans, such ... Read Full Answer >>
  4. Can variable annuities be rolled into an IRA?

    Variable annuities are often found in government or nonprofit employer retirement plans such as 403(b) or 457(b) plans. With ... Read Full Answer >>
  5. How do I calculate the future value of an annuity?

    When planning for retirement, it is important to have a good idea of how much income you can rely on each year. There are ... Read Full Answer >>
  6. Are variable annuities protected from creditors?

    Whether your variable annuity is protected from creditors depends on the state in which you live. About three-quarters of ... Read Full Answer >>

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