Using at least one paragraph, describe what a Savings Annuity is. You might find it helpful to make references to the definition and formula in the text.

A **savings annuity** is a financial product designed to help individuals accumulate wealth over time by making regular, periodic payments (such as monthly or annually) into an account, typically with the goal of earning interest. In essence, a savings annuity allows individuals to save a specified amount regularly, which grows due to compounding interest. The future value of a savings annuity can be calculated using the **future value of an annuity formula**:

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

Where:
- **FV** is the future value of the annuity,
- **P** is the periodic payment,
- **r** is the interest rate per period, and
- **n** is the total number of periods.

This formula shows how the accumulated savings grow over time due to both regular contributions and the power of compound interest. For example, by consistently depositing a fixed amount into the annuity and allowing the interest to compound, the account balance will grow exponentially as more interest is earned on both the initial contributions and the interest accrued in previous periods.

Do you need further clarification or details on any part of this explanation? 

Here are five questions related to savings annuities:
1. How does compound interest affect the growth of a savings annuity?
2. What happens if you increase the periodic payment in a savings annuity?
3. How would the future value formula change with more frequent contributions (e.g., weekly)?
4. What is the difference between an ordinary annuity and an annuity due in terms of future value?
5. How does a higher interest rate influence the future value of a savings annuity?

**Tip:** The earlier you start contributing to a savings annuity, the more time compound interest has to work, greatly increasing your future savings.

Explore the concept of savings annuities and how they help individuals accumulate wealth over time through regular payments and compound interest. Learn to calculate the future value using the formula FV = P × [(1 + r)^n - 1] / r. Suitable for advanced high school and college-level learners.

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