The difference between an ordinary annuity and an annuity due is that each of the payments of the annuity due earns interest for one additional year (period).

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An annuity due is similar to an ordinary annuity except that each payment of the annuity due earns interest for one additional year, making it slightly more valuable than an ordinary annuity with the same terms.

The Difference Between an Ordinary Annuity and an Annuity Due