• An annuity payment is an annuity that must be paid immediately at the beginning of each period.

  • An annuity payment can be contrasted with a regular annuity where payments are made at the end of each period.
  • A typical example of an annuity payment is the rent paid at the beginning of each month.
  • An example of a regular annuity is loans such as mortgages.
  • The present and future value formulas for an annuity due are slightly different from the formulas for a regular annuity as they take into account the difference in when payments are made.