Annuity Due

Annuity at the beginning of the period

Future Value of the Annuity at the Beginning of the Period (FVABP) is product of Future Value of Annuity at End of the Period (FVAEP) and principal amount added up with yearly interest.

In view of formula

FVABP = FVAEP * (A+I)

Where

A = Principal Amount
I = Rate of Interest
FVAEP = A*FVIFA
FVIFA = [(1+k)^n]-1] / k
k = rate of Interest and
n = No. of years.

For Example

Assuming Mr. X invest Rs 1,000 at the beginning of every year, for five years at the rate of 10%.

Then the value of the investment after five years is


FVABF = Rs.1,000 × 6.7155= Rs.6,715.5