An Annuity Due as the present value of an immediate cash flow plus an ordinary annuity

Can someone please explain to me how we would calculate this using the BA 2 Plus calculator - because I cannot seem to get the right answer for the annuity.

The answer is meant to be = 2,267,119.05

Though I always seem to get something much bigger.

Immediate annuity plus payment today:

P/Y=C/Y=1
END
2nd CLR TVM
19 N 7 I 200000 PMT CPT PV -2,067,119.049
Add payment made today = 2,067119.049 + 200,000 = 2,267,119.049

Annuity due
P/Y=C/Y=1
BGN
2nd CLR TVM
20 N 7 I 200000 PMT CPT PV -2,267,119.049

An n-year annuity due is equivalent to an immediate annuity for n-1 years plus a payment today. :nerd_face:

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Thank you, Thank you, Thank you!! :slightly_smiling_face: