Present value is what a future stream of payments is worth today ... The present value of the annuity due formula uses the same inputs but adjusts for the earlier payment timing.

Ordinary annuities pay at the end of each period, while annuity due payments happen at the beginning. This seemingly small difference in timing can impact the future value of an annuity because of ...

The price of a fixed annuity is the present value of all future cash flows ... This calculation doesn't account for income taxes due on the annuity payouts. You're investing your money when ...