Finding the Present Value of an Annuity Due (Intermediate Accounting I #6)

Annuity dues are slightly different from ordinary annuities. Annuity dues have fixed cash flows over a finite (limited) period; however, their cash flows are at the BEGINNING of each period rather than the end. Find out how to find the present value and learn about the logic behind it!
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[@michaelgomez5485]

Greatly helped for my Finance Midterm, thanks mate!

[@prasitrattanapiseth1058]

You,re really know what u are doing .

[@DrCashcow10]

is the interest you used the inflation of the dollar

[@ekanathr5254]

I think it would be better to take down the video & re-upload after editing. n-1 is important in this formula right..

[@sophiewu8948]

is it should be 9 instead of 10?

[@yourieltsfriend570]

to me it also look that there is a mistake in the video because in case of annuity due there is no payment of 10,000 at the end of the 10th year

[@EllisPepper1999]

What if the term is infinite? Let's say a teacher has a monthly salary of 18,549 then the rate is 1.4 effective, then assume that she will never retire (infinite term) how was that?

[@FinanceAcademy7799]

if the term is infinite then you need to calculate the present value of perpetuity. 18549/.001159247 = 16000906.26 (use nominal rate)

[@hamzaafridi1373]

in annuity there is a 1+r in the last there is no such things