# Present value of an annuity due

## Description

An annuity is a series of payments made at fixed intervals of time. An annuity-due is an annuity whose payments are made at the beginning of each period. Deposits in savings, rent or lease payments, and insurance premiums are examples of annuities due.

Related formulas## Variables

PV_{Ad} | Present value of the annuity due (dimensionless) |

A | The value of the individual payments in each compounding period (dimensionless) |

i | The discount rate, or the interest rate at which the amount will be compounded each period (dimensionless) |

n | The number of periods (dimensionless) |