What’s the difference between an ordinary annuity and an annuity due? Why should you rather receive an annuity due for $10,000 per year for 10 years than an otherwise similar ordinary annuity?
Thus far we have dealt with single payments, or “lump sums.” However, many assets provide a series of cash inflows over time, and many obligations like auto, student, and mortgage loans require a series of payments. If the payments are equal and are made at fixed intervals, then the series is an annuity. For example,$100 […]