Distinguish between the present value of an annuity due and the present value of a deferred annuity.

Question:

Distinguish between the present value of an annuity due and the present value of a deferred annuity. Draw a time line of each.

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,...