Answer:
the last part of the question is missing:
Assume that you can earn 9% a year on your savings.
you need to determine the future value of an ordinary annuity:
future value = annual contribution x FV annuity factor
- annual contribution = $2,000
- FV annuity factor, 9%, 40 periods = 337.882
future value = $2,000 x 337.882 = $675,764
