What is the difference between an ordinary annuity and an annuity due Which always has greater future value and present value for identical annuities and interest rates Why ...

An ordinary annuity is one for which payments occur at the end of each ...

What is the difference between an ordinary annuity and an annuity due? Which always has greater future

Question:

What is the difference between an ordinary and an due? Which always has greater and present value for identical annuities and interest rates? Why?

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...