Question: As stated in the chapter, annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception

As stated in the chapter, payments are assumed to come at the end of each payment period (termed an ordinary However, an exception occurs when the payments come at the beginning of each period (termed an due). To find the present value of an due, subtract 1 from n and add 1 to the tabular value. To find the of an add 1 to n and subtract 1 from the tabular value. For example, to find the of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716).
What is the of a 15-year of $1,800 per period where payments come at the beginning of each period? The interest rate is 12 percent.

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