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Present value of annuity due

Present value of annuity due

The formula for the present value of an annuity due, sometimes referred to as an immediate annuity, is used to calculate a series of periodic payments, or cash flows, that start immediately.

The present value of an annuity due formula uses the same formula as an ordinary annuity, except that the immediate cash flow is added to the present value of the future periodic cash flows remaining. The number of future periodic cash flows remaining is equal to n – 1, as n includes the first cash flow.

Reference: financeformulas.net