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Therefore, the future value of your annuity due with $1,000 annual payments at a 5 percent interest rate for five years would be about $5,801.91.
In Excel, the PV and FV functions take on optional fifth argument which selects from annuity-immediate or annuity-due. An annuity-due with n payments is the sum of one annuity payment now and an ordinary annuity with one payment less, and also equal, with a time shift, to an ordinary annuity.
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Two dots indicates an annuity whose payments are made at the beginning of each year (an "annuity-due"); a horizontal line above the symbol indicates an annuity payable continuously (a "continuous annuity"); no mark above the basic symbol indicates an annuity whose payments are made at the end of each year (an "annuity-immediate").
Texas Instruments BA II Plus Professional. The BA II Plus is the main financial calculator sold by Texas Instruments as of 2015. It provides basic scientific calculator functionality alongside its financial functions, and provides most of its financial functions in the form of worksheets, where values are input as variables in a table; when a computation is requested, the calculator plugs the ...
An ordinary annuity is when a payment is made at the end of a period. An annuity due is when a payment is due at the beginning of a period. While the difference may seem meager, it can make a ...