Now do the same, on your own, to derive the formula for the future value of an ordinary annuity with $1 payments, 30 payment periods, and 4% interest per payment period and use it to compute the account balance.

- use previous question as reference:

Derive the formula for the future value of an ordinary annuity with $1 payments, 20 payment periods, and 5% interest per payment period and use it to compute the future value. For this problem part of the computation is written out for you. The bottom equation written here is just a statement of the future value of the ordinary annuity (written based on the bucket approach, as usual), while the top equation will be the result of multiplying both sides of the bottom one by the growth factor 1.05. Write out the left side of the top equation, then subtract the bottom equation from the top one (such a clever idea!), and use the results to solve for FV. = (1.05)FV ($1)(1.05)19 + ($1)(1.05)18 + ...+ ($1)(1.05)3 + ($1)(1.05)2 + ($1)(1.05) + $1 = FV