Understand your annuity due's present and future worth. This calculator helps determine the value of a series of equal payments made at the beginning of each period, crucial for retirement planning, loan calculations, and investment analysis.
Formula:
The formulas for calculating the Present Value (PVAD) and Future Value (FVAD) of an Annuity Due are:
Future Value of Annuity Due (FVAD) Formula:
FVAD = PMT × [((1 + r)n - 1) / r] × (1 + r)
Present Value of Annuity Due (PVAD) Formula:
PVAD = PMT × [1 - (1 + r)-n / r] × (1 + r)
Where:
- PMT = Payment amount per period
- r = Interest rate per period (as a decimal)
- n = Total number of periods