Example:Find the PV of a 3-year annuity due that will make a series of $100 beginning of year payments, given a 10% discount rate.
Note: There are two ways to approach this question. The first is to put your calculator in BGN mode and then input all the variables as you normally would. The second is to shorten the annuity by one year (N - 1) and find the PV of that shortened annuity as if it were an ordinary annuity, then add the first annuity payment (PMT0) to it to come up with the PV of this annuity due. In this second alternative, you will leave your calculator in the END mode.
?
1.    BGN mode: N = 3, I/Y = 10, PMT = 100; CPTPV = $273.55
2.    END mode: N = 2, I/Y = 10, PMT = 100; CPTPV = $173.55 + 100 = PV = $273.55
 
d: Calculate an unknown variable, given the other relevant variables, in annuity problems.
Example:Find the PMT required to fund a retirement program of $3,000 at the end of 15 years, given a rate of return of 7%.