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Place all five payments
The ordinary pattern pays at times 1 to 5. The due pattern pays at times 0 to 4. Both present values are measured at time zero.
Compare the discounted terms
| Payment position | Ordinary date | Due date |
|---|---|---|
| First | 1 | 0 |
| Second | 2 | 1 |
| Third | 3 | 2 |
| Fourth | 4 | 3 |
| Fifth | 5 | 4 |
Apply the one-period shift
Multiplying the unrounded ordinary value by 1.06 gives the due value. The difference is 252.7418. The factor changes every payment’s discount exponent by one.
Keep the future date consistent
At time 5, ordinary FV is 5,637.093 and due FV is 5,975.3185. The due final payment at time 4 has one growth period before that comparison date.