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Annuities due are beginning-of-year annuities. To work annuities due, simply set up the problem the same way as would be done with an ordinary annuity, then multiply the resulting factor by (1+I). This is done whether the problem is present value or future value.
To illustrate this:
| Find the future value of a three-year 6% annuity due or $4000. |
FVa = Annuity(FVIFa)(1+I)
FVa = 4000(3.1836)(1.06)
FVa = $13,498.46
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