To turn an ordinary annuity answer into an annuity due answer, multipl…

Question

To turn an ordinary annuity answer into an annuity due answer, multiply the result by:

Accepted Answer

D. (1 + i)

1. Only one extra period of interest separates the two.
2. One period of compounding is written as one plus the rate.
3. So multiply by (1 + i) once more.
_Source: OpenStax Principles of Finance 2e, Chapter 8, Time Value of Money II._

Answer

(1 - i)

Answer

(i / n)

Answer

(n + 1)

To turn an ordinary annuity answer into an annuity due answer, multiply the result by:

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