The present value of an annuity due exceeds the present value of an ordinary annuity.

Name: The present value of an annuity due exceeds the present value of an ordinary annuity.
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Quizplus · Accepted Answer

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

The Present Value of an Annuity Due Exceeds the Present