annuity due


Annuity due

An annuity with n payments, where the first payment is made at time t = 0, and the last payment is made at time t = n - 1.

Annuity Due

A payment that must be made at the beginning, rather than at the end, of a period. For example, an annuity due may require payment at the beginning of the month instead of at the end. Many lease agreements have annuity due payments, while credit cards, for example, do not.

annuity due

An annuity in which payments are made at the beginning of each period. Compare ordinary annuity.

annuity due

See advance payment annuity.