Ordinary annuities pay at the end of a period. Annuities due pay in advance or at the beginning of a period. Because of the difference in payment timing, the present value of an annuity due will ...

Regular payouts are also taxed as income at your ordinary tax rate. Some annuity contracts ... Indexed annuities may return ...

The calculation of the payment amount (PMT) for an annuity due also uses a formula that considers the time value of money. Using the same example from the ordinary annuity, let’s calculate the ...