Other things being equal, the present value of an annuity due will be less than the present value of an ordinary annuity.

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Quizplus · Accepted Answer

An annuity due has payments at the beginning of each period, so each payment is discounted for one less period than in an ordinary annuity, where payments are at the end of each period. This results in a higher present value for an annuity due compared to an ordinary annuity.

Other Things Being Equal, the Present Value of an Annuity