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The problem states that Tony invests $1233 every year in an annuity that pays 6.3% interest, compounded annually, for 19 years. The goal is to find the total value of the annuity at the end of this period.

To solve this, we will use the future value of an ordinary annuity formula:

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

Where:
- $ P $ is the annual payment ($1233),
- $ r $ is the annual interest rate (6.3% or 0.063),
- $ n $ is the number of years (19).

Let’s calculate this step by step:

\[
FV = 1233 \times \frac{(1 + 0.063)^{19} - 1}{0.063}
\]

I'll compute the total for you.The future value of the annuity, based on Tony's annual investment of $1233 with a 6.3% interest rate compounded annually over 19 years, is approximately **$42,910.52**.

If you have any questions or would like a further explanation, feel free to ask!

Here are 5 related questions for deeper understanding:
1. How would the total value change if the interest rate were 5% instead of 6.3%?
2. What happens to the future value if Tony invests for 25 years instead of 19?
3. How would the calculation differ if the interest were compounded quarterly instead of annually?
4. What is the difference between an ordinary annuity and an annuity due, and how would it affect the future value?
5. How much total interest did Tony earn over the 19 years?

**Tip**: Always ensure that the interest rate matches the compounding period (annual rate with annual compounding, etc.) for accurate calculations.

To save money for his daughter's college tuition, Tony invests $1233 every year in an annuity that pays 6.3% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 19 years.

Learn how to calculate the future value of an annuity with annual contributions of $1233, 6.3% interest compounded annually over 19 years. Detailed step-by-step solution with key formulas explained.

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