We can use the formula for the future value of an ordinary annuity:
FV = P * ((1 + r)^n - 1) / r
where:
- FV is the future value of the annuity
- P is the periodic payment (in this case, $1300)
- r is the interest rate per period (in this case, 5% per year, compounded annually)
- n is the total number of periods (in this case, 10 years)
Plugging in the values, we get:
FV = 1300 * ((1 + 0.05)^10 - 1) / 0.05
Using a calculator, we get:
FV ≈ $16,524.12
Therefore, the future value of the annuity is approximately $16,524.12.