The problem is asking to find the future value of an ordinary annuity, where the monthly payments are compounded at 3% annually, with monthly contributions of $23 over 10 years.

We can use the formula for the future value of an ordinary annuity:

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

Where:

• $P$ is the monthly payment: $P = 23$
• $r$ is the monthly interest rate: $r = \frac{0.03}{12}$
• $n$ is the total number of payments: $n = 12 \times 10 = 120$

Now, I'll calculate the total future value for you.The total value of the annuity after 10 years is approximately $3,214.05.

Would you like further details or clarification?

Here are some related questions for further exploration:

1. What is the difference between an ordinary annuity and an annuity due?
2. How would the future value change if the interest rate were compounded quarterly instead of monthly?
3. What if Lena made additional contributions beyond $23 per month? How would this affect the annuity's value?
4. How does inflation affect the future value of annuities over long periods?
5. What formula would be used if Lena wanted to calculate how much to save to reach a specific goal?

Tip: Always check if payments are at the beginning or the end of the period; this determines if it's an ordinary annuity or an annuity due.