1. The problem involves understanding a simple annuity, which is a series of equal payments made at regular intervals. 2. The formula for the future value of a simple annuity is $$FV = P \times n$$ where $P$ is the payment amount and $n$ is the number of payments. 3. Important rules: payments are equal and occur at the end of each period; no interest is considered in a simple annuity. 4. For example, if you pay 100 each month for 12 months, the future value is calculated as $$FV = 100 \times 12 = 1200$$. 5. This means after 12 months, you will have paid a total of 1200. 6. This concept is useful for budgeting and understanding payment schedules without interest.