Annuities
 Ordinary?  Due?  What do I do? 

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silhouette During World War II, air defense forces were trained to recognize airplanes by their silhouette. In the dark night skies, you needed to quickly discern friend from foe, and take appropriate actions. Today in studying finance, you need to be able to quickly tell an ordinary annuity from an annuity due, and then take the appropriate steps to calculate the annuity's future or present value.
 


The purpose of this tutorial is to help you better identify, understand, and calculate future and present values of both ordinary annuities and annuities due. The tutorial assumes that you have a basic understanding of the time value of money, but might still need a little extra help with annuities.
For those needing a more basic understanding of the time-value-of-money principles, check out one or more of the following links before going on to pages two and three:

Page One | Page TwoPage Three

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(Revised 4/22/15)



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