Ordinary Annuities and Annuities Due As discussed in the text, an annuity due is identical to an ordinary annuity 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 annuity and the value of an otherwise equivalent annuity due is:

Show this for both present and future values.

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Annuity due value = Ordinary annuity value x (1 + r)