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Ordinary Annuity vs Annuity Due

Ordinary Annuity vs Annuity Due

This video explains the difference between an ordinary annuity and an annuity due. Both an ordinary annuity and an annuity due are a stream of cash flows; the difference is in the timing of those cash flows. With an annuity due, the first cash flow occurs today. With an ordinary annuity, the first cash flow occurs one period from now. Thus, the ...

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