The future value-annuity due formula is used to calculate the ending value of a series of payments where the first payment is received immediately and subsequent payments received at the beginning of each period. A good example of annuity due Rent payments.
EXAMPLE
Nazarene University wants to rent some building in town to offer evening courses. The university's management will like to determine their future balance after 3 years after making a $120,000 deposit today which is also the agreed rent per year with a 4% annual increase.
From the calculator above, given the periodic payment value of 120000, 4% rate per period, for 3 periods, the future value annuity due will be $ 389575.68