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Annuity Due

Home - Dictionary of 1,000+ Accounting Terms - Accounting Terms – Letter A - Annuity Due

 

 

Annuity Due

Annuity due is referred to as a series of equal payments that are made at the start of each equal time interval such as monthly rent payment.

Some of the examples of an annuity due are as follows:

  • A business purchases a printing machine through a lease agreement that requires a monthly payment of $100 to be made by the business and that too at the start of each month for the next four years.
  • A business enters into an office lease as per which the company would be required to make regular payments to the owner of the office and that too at the start of each month.