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This problem is asking for the future value of an ordinary annuity. Here's how we can approach it.

### Given:
- Annual deposit ($ P $) = \$1283
- Interest rate ($ r $) = 7.1% or 0.071
- Time period ($ t $) = 26 years
- Interest is compounded annually, and payments are made at the end of each year.

### Formula for the future value of an ordinary annuity:
\[
FV = P \times \frac{(1 + r)^t - 1}{r}
\]

Where:
- $ FV $ is the future value of the annuity,
- $ P $ is the annual payment,
- $ r $ is the interest rate per period,
- $ t $ is the number of periods.

### Substituting the values:
- $ P = 1283 $
- $ r = 0.071 $
- $ t = 26 $

I will now calculate the future value.The future value of Jane's annuity after 26 years is approximately **$89,450.89**.

Would you like further details or explanations?

Here are 5 related questions to deepen your understanding:
1. How does the future value change if the interest rate is compounded more frequently (e.g., monthly)?
2. What is the difference between an ordinary annuity and an annuity due?
3. How would the future value differ if the payments were made at the beginning of each period?
4. How does inflation affect the purchasing power of the future value of this annuity?
5. What happens if Jane skips one or more annual payments during the 26 years?

**Tip:** When calculating compound interest, always ensure the interest rate and the number of periods are aligned with the payment schedule.

To plan for retirement, Jane deposits $1283 each year in an annuity that pays 7.1% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 26 years.

Learn how to calculate the future value of an annuity with annual deposits of $1283, compounded at a 7.1% interest rate over 26 years. Discover the key formula for annuity calculations and how interest rates impact long-term savings.

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