Lecture Notes on Time Value of Money - Sacramento State

An annuity in advance is a stream of cash flows beginning today. Since the annual lease payments form an annuity in advance, value all payments except the one made today using the standard annuity formula. Add back the payment made today. The immediate payment is not discounted because it occurs today, year 0. Because the first payment is treated separately, the annuity has nine periods ... ................
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