FV = [PV = 260,000, T = 60, PMT = -1,558.83, I = 0.07/12]

The equation you've provided represents the calculation of **Future Value (FV)** for a financial annuity. Let's break down the components you've listed:

- **PV**: Present Value = 260,000
- **T**: Total number of periods = 60 months (5 years)
- **PMT**: Monthly Payment = -1,558.83 (the negative sign indicates outgoing payments)
- **I**: Monthly Interest Rate = 0.07/12 (annual interest rate of 7%, divided by 12 to get the monthly rate)

We can calculate the Future Value of this annuity using the following formula for the future value of an annuity with regular payments:

\[
FV = PV \times (1 + i)^T + PMT \times \left( \frac{(1 + i)^T - 1}{i} \right)
\]

Where:
- $ FV $ = Future Value
- $ PV $ = Present Value
- $ i $ = Interest rate per period (monthly in this case)
- $ T $ = Number of periods
- $ PMT $ = Payment per period

### Substituting the values:
- $ i = \frac{0.07}{12} = 0.0058333 $
- $ PV = 260,000 $
- $ T = 60 $
- $ PMT = -1,558.83 $

Now, I'll calculate the FV.

The **Future Value (FV)** of the annuity is approximately **$256,981.40**.

Would you like more details on this calculation or have any follow-up questions? 

Here are some related questions you might find interesting:
1. How would the Future Value change with a different interest rate?
2. What happens if the monthly payment (PMT) is increased or decreased?
3. How does the number of periods (T) affect the Future Value?
4. How would the calculation change if there were no initial Present Value (PV)?
5. What is the impact of different compounding frequencies on the Future Value?

**Tip**: Always ensure to adjust the interest rate based on the compounding frequency (monthly, quarterly, etc.) when calculating annuities.

Discover how to calculate the Future Value of an annuity with a present value of $260,000, 60 monthly periods, and monthly payments of -$1,558.83, using a 7% annual interest rate compounded monthly. The problem covers key concepts in financial mathematics, including the Future Value of an Annuity formula and the effects of compound interest.

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