Skip to content

What is Annuity due?

A series of equal payments made at the *start* of each period.

Not to be confused with Ordinary annuity

An ordinary annuity pays at the end of each period, so every instalment earns one compounding period less. On ₹10,000 a month at 12% for ten years the two conventions differ by ₹23,004.

Where this is used