The future value of an ordinary annuity for any given interest rate and number of periods is always less than the future value of an annuity due for the same interest rate and number of periods.

Question

Quizplus · Accepted Answer

In an annuity due, payments are made at the beginning of each period, allowing each payment to earn interest for an additional period compared to an ordinary annuity, where payments are made at the end of each period.

The Future Value of an Ordinary Annuity for Any Given