Question

Explain the difference between a regular annuity and an annuity due.

Explain the difference between a regular annuity and an annuity due.

Homework Answers

Answer #1

HI

Annuity is the regular pay scheme which goes on for a definite time period, for example 5 years, 10 years etc.

In regular annuity, first payment is made at the end of the payment period. For example there is an annuity which pays yearly coupon, so in regular annuity first payment is made after 1 year.

in annuity due first payment is made at the beginning of period i.e. at the start of annuity. For example in an annuity due, if the annuity starts from today, then first payment is also made today only.

Thanks


Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the difference of the future amounts of the annuity due and ordinary annuity for...
What is the difference of the future amounts of the annuity due and ordinary annuity for regular quarterly payments of 14000 at 14% compounded quarterly. Please Solve As soon as Solve quickly I get you UPVOTE directly Thank's Abdul-Rahim Taysir
Explain the meaning of this statement: Annuity due differs from ordinary annuity. In case of annuity...
Explain the meaning of this statement: Annuity due differs from ordinary annuity. In case of annuity due, show the required change in the future value and present value equations.
Discuss the difference between a growing annuity and a growing perpetuity. Provide an example of each....
Discuss the difference between a growing annuity and a growing perpetuity. Provide an example of each. Also explain the annuity transformation method.
How do simple and compound interest differ? What is the difference between an ordinary annuity and...
How do simple and compound interest differ? What is the difference between an ordinary annuity and annuity due? Why is time value a relevant consideration in accounting? What are some areas of accounting where time value comes into play?
Whats the the difference between a regular tiling and a semiregular tiling.
Whats the the difference between a regular tiling and a semiregular tiling.
what is the difference between a regular equation and a differential equation? What are the types...
what is the difference between a regular equation and a differential equation? What are the types of differential equations?
Fixed vs. life.Explain in your own words the difference between a fixed-term annuity and a life...
Fixed vs. life.Explain in your own words the difference between a fixed-term annuity and a life annuity.
When comparing annuity due to ordinary annuities, annuity due annuities will have higher Select one A....
When comparing annuity due to ordinary annuities, annuity due annuities will have higher Select one A. Annuity amounts B. Present and Future values C. Present Value D. Future Value
When comparing an annuity due to an ordinary annuity, an annuity due: will always have lower...
When comparing an annuity due to an ordinary annuity, an annuity due: will always have lower present values and higher future values assuming equal payments, interest rates and terms. will always have lower future values and higher present values assuming equal payments, interest rates and terms. will always have lower future values and lower present values assuming equal payments, interest rates and terms. will always have higher present values and higher future values assuming equal payments, interest rates and terms....
What is the difference between a phenotypic change that is due to a plastic response to...
What is the difference between a phenotypic change that is due to a plastic response to the environment (AKA acclimation) and a phenotypic change that is due to an adaptive evolutionary response?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT