To calculate the future value of the student's savings after 40 years, we'll again use the future value of an annuity formula:

$FV = P \times \frac{(1 + r)^n - 1}{r}$

Where:

• $P = 55$ dollars (monthly investment),
• $r$ is the monthly interest rate (annual rate divided by 12),
• $n$ is the total number of payments (number of months).

Given:

• Annual interest rate $= 4.8\%$ or $0.048$ as a decimal.
• Monthly interest rate $r = \frac{0.048}{12} = 0.004$.
• Number of months $n = 40 \times 12 = 480$.

Now, we'll calculate the future value.The account will be worth approximately $79,679.68 after 40 years if the student invests $55 per month at an interest rate of 4.8% compounded monthly.

Would you like more details or have any questions?

Here are 5 related questions to consider:

1. How much interest will the student earn over the 40 years?
2. What would be the future value if the interest rate were 6% instead of 4.8%?
3. How would the savings change if the student invested $100 per month instead of $55?
4. What would be the value of the account after 30 years instead of 40?
5. How much would the student need to invest monthly to reach $100,000 in 40 years?

Tip: Small monthly savings, when compounded over long periods, can grow significantly due to the power of compound interest.