Question: Please show formula and answer in Excel g. How would the PV and FV of the above annuity change if it were an annuity due

Please show formula and answer in Excel

g. How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity?

For the PV, each payment would be received one period sooner, hence would be discounted back one less year. This would make the PV larger. We can find the PV of the annuity due by finding the PV of an ordinary annuity and then multiplying it by (1 + I).

PV annuity due =

$0.00

$0.00

Exactly the same adjustment is made to find the FV of the annuity due.

FV annuity due =

$0.00

$0.00

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