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Understanding Annuity Due Payments

An annuity due is a series of uniform cash flows that occur at the beginning of each period, where payments are made at the start of each period rather than the end.

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BryanHarold Broo
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28 views8 pages

Understanding Annuity Due Payments

An annuity due is a series of uniform cash flows that occur at the beginning of each period, where payments are made at the start of each period rather than the end.

Uploaded by

BryanHarold Broo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Annuity Due

Annuity Due

An annuity due is
An annuity due is
series of uniform
one where the
cash flows that
payments are made
occur at the
at the beginning of
beginning of each
each period.
period.
• An annuity due is one where the payments
are made at the beginning of each
period.

• An annuity due is series of uniform cash


flows that occur at the beginning of
each period.

Annuity Due
• An annuity due is one where the payments
are made at the beginning of each
period.

• An annuity due is series of uniform cash


flows that occur at the beginning of
each period.

Annuity Due
Example:
• A small bakery started to save money by depositing an amount every
beginning of the month to a bank that offers 5% interest so they can buy
a Php40,000.00 worth of oven in 6 months. Find the monthly deposit.
Example:
• A small bakery started to save money by depositing an amount every
beginning of the month to a bank that offers 5% interest so they can buy
a Php40,000.00 worth of oven in 6 months. Find the monthly deposit.
Example:
• A small bakery started to save money by depositing an amount every
beginning of the month to a bank that offers 5% interest so they can buy
a Php40,000.00 worth of oven in 6 months. Find the monthly deposit.

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