In this video, we break down a complex annuity and perpetuity question by identifying key variables and applying the right formulas. Using a real-life example, we work through calculating the future value of a 20-year annuity with annual payments, compounded at 10%, to find the value at the end of 30 years. This step-by-step breakdown demonstrates how to approach similar financial problems by simplifying them into manageable portions and using clear timelines. Whether you're studying time value of money or preparing for an exam, this approach will help you tackle tricky questions with confidence.