(BGN) Annuity Due Calculations Using BA II Plus - Part 2

Another annuity due example - Finding Present Value. Payments made at the start or beginning.
You can watch part 1 of the video here: • (BGN) Annuity Due Calc...
Simple Annuities in Excel: • Annuity Calculations i...
General Annuities in Excel -Calculating FV & PV: • General Annuity Proble...

[@ThomasJHorrego]

would like to see more videos of examples. you do a great job of walking through the problem in a clear, concise manner.

[@kyronraad3758]

Brilliant, you have a teaching gift.

[@JohnDoe007]

merci beaucoup.

[@mamaorith2933]

If I wanna stick with annual and p/y 1 while c/y 2 will the numerical value will be different?

[@joshemman]

Yes. It will be different. The annual payment starts accruing interest at the beginning of the year but you have to wait to make monthly deposits to realize interest on them.

[@ibrahimdaas]

Can you solve it without changing to BGN mode using : PV annuity due = PV ordinary annuity * (1+Periodic Rate) ??

[@user-tf4pj3di1e]

could u please tell what the deposit is？ deposit is the pv or PMT？

[@joshemman]

+周沁哲 It depends on how "deposit" is used in the sentence. If there is only one deposit, then it is usually PV. If there are periodic or recurring deposits, then it is PMT.

[@tingyuliu3943]

I can understand P/Y =12, but why we also have to adjust "n" from 3 to 36?

[@amadonervo2001]

in spanish: P/y como "n" , deben estar en la misma escala de tiempo ( o sea están relacionados) ..... si hay pagos o transacciones 12 veces al año (mensual), el "n" debe incorporar el total de todas las transacciones o pagos que se hagan ( y en la escala de tiempo que se especifica en p/y , es decir mensualmente)

[@HieuLe-lz1do]

Compounded semiannually we should x2= 3x2= 6. Why did you x12 instead

[@joshemman]

I used x12 because payments are made at the start of each month. N is the number of payments in Annuity, not the number of compounding periods.