As discussed in the text, an annuity due is identical to an ordinary annuity except that the

Question:

As discussed in the text, an due is identical to an ordinary except that the periodic payments occur at the beginning of each period and not at the end of the period. Show that the relationship between the value of an ordinary and the value of an otherwise equivalent due is:
Annuity due value = Ordinary value × ( 1 + r )
Show this for both present and future values. Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...