Holding all other variables constant, payment per period for an annuity due will be higher than an ordinary annuity.

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In an annuity due, payments are made at the beginning of each period, which means each payment has more time to earn interest compared to an ordinary annuity where payments are made at the end of each period. Therefore, to achieve the same future value, the payment per period for an annuity due will be lower than for an ordinary annuity, assuming the interest rate and total number of payments remain constant.

Holding All Other Variables Constant, Payment Per Period for an Annuity