To save for her newborn son's college education, Lea Wilson will invest $1,455 at the end of each year for the next 29 years. The interest rate is 10%. What is the future value?

Lea Wilson is making regular investments at the end of each year, so this problem involves the **future value of an ordinary annuity**. The formula for the future value of an ordinary annuity is:

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

Where:
- $FV$ = future value
- $P$ = annual payment (investment)
- $r$ = interest rate per period
- $n$ = number of periods

In this case:
- $P = 1,455$ (the annual investment)
- $r = 0.10$ (10% interest rate)
- $n = 29$ years

Now let's plug these values into the formula to calculate the future value.

\[
FV = 1,455 \times \left( \frac{(1 + 0.10)^{29} - 1}{0.10} \right)
\]

Let me calculate the future value.The future value of Lea Wilson's investment, after 29 years with a 10% interest rate, will be approximately **$216,258.00**.

Would you like a more detailed explanation or have any questions?

Here are 5 related questions you might find helpful:
1. What happens if the interest rate changes?
2. How is the formula for an ordinary annuity different from an annuity due?
3. What would be the future value if the investment period was longer?
4. How do inflation rates impact the actual value of this future sum?
5. How can the present value of this future amount be calculated?

**Tip:** For better results, try making contributions more frequently, like monthly, to take advantage of compound interest!

Calculate the future value of an ordinary annuity where Lea Wilson invests $1,455 at the end of each year for 29 years at a 10% interest rate. This solution involves key concepts like compound interest and future value formulas, suitable for high school students in Grades 10-12.

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