Future Value of an Annuity
	n Annuity n Definition: A series of equal payments n Example: Saving $1,000 a year for 20 years or receiving $500 a year for 10 years n Future value of an annuity (a saving schedule) n At 6% annual interest rate, saving $1 a year for 20 years has a future value of 36.785 (Table A.2, page 448). So the future value of saving $1,000 a year for 20 years is 36.785*1,000=$36,785. n That means if you save $1000 a year at 6% annual interest rate, it will grow into $36,785 in 20 years.