Differentiate between an ordinary annuity and an annuity due How is the future value of an ordinary annuity calculated, and how (for the same cash flows) can it be converted into the future value of an annuity due ...

An ordinary annuity generates payments at the end of eac ...

Differentiate between an ordinary annuity and an annuity due. How is the future value of an ordinary

Question:

Differentiate between an ordinary and an due. How is the of an ordinary calculated, and how (for the same cash flows) can it be converted into the of an due?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...