Ordinary Annuities and Annuities Due [LO1] As discussed in the text, an annuity
due is identical to an
ordinary annuity except that the periodic payments occur
at the beginning of each period and not at the end of the period. Show that the
relationship between the value of an ordinary annuity and the value of an otherwise
equivalent annuity due is:
Annuity due value = Ordinary annuity value * (1 + r )
Show this for both present and future values.