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In this video tutorial, the presenter explains how to calculate the future value of savings when planning for retirement. Using a five-year time horizon, they illustrate the scenario of saving $2,000 annually at an interest rate of 5%. The tutorial aims to demonstrate how interest works, starting with the first year's savings of $2,000, which will earn 5% interest. At the end of the year, the savings will grow to include the interest earned on the $2,000. The video guides viewers step-by-step through the calculation process to show how much savings will accumulate by the end of the five years at the specified interest rate.