Personal Finance

posted by .

NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ANSWERS??

1.Determining the Future Value of Education. Jenny Franklin estimates that as a result of completing her master’s degree, she will earn $6,000 a year more for the next 40 years.
a.What would be the total amount of these additional earnings? $240,000
b.What would be the future value of these additional earnings based on an annual interest rate of 6 percent?

Calculating Future Value of Salary. During a job interview, Pam Thompson is offered a salary Of 23,000. The company gives annual raises of 6 percent. What would be Pam’s salary
during her fifth year on the job?


Computing Future Value. Calculate the future value of a retirement account in which you deposit $2,000 a year for 30 years with an annual interest rate of 8 percent.

  • Personal Finance -

    b. Future value of an asset with interest compounded annually, (you didn't mention how to compound)
    n = number of years
    R = rate
    FV = Original investment * ((1 + R)^n)

    Cal. Future value of salary, 6%/year
    1st year--23,000
    2nd year---23,000 + 1,380 = 24,380
    3rd year---24,380 + 1,463 = 25,843
    4th year---25,843 + 1,551 = 27,394
    5th year---27,394 + 1,644 = 29,038
    Above is cal. with 6% simple interest per year, not FV formulas.

    Cal. FV retirement acct., dep. $2000/per year for 30 yrs, annual rate 8%--compounded annually (You didn't mention how to compound)
    n = number of years
    R = rate
    FV = Original investment * ((1 + R)^n)

    FV = 2000 * (1 + .08)^30)
    FV = 2000 * (1.08)^30
    FV = 2000 * (10.0627)
    FV = ?

  • Personal Finance -

    in 2000, selected new automobiles had an average cost of $16,000. The average cosst of those same motor vehicles is now $28,000. What was the rate of increase for this item between the two time period?

  • Personal Finance -

    20,1254

  • Personal Finance -

    During a job interview, Pam Thompson is offered a salary of $50,000. The company gives annual raises of 12 percent. What would be Pam’s salary during her fifth year on the job?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. After finishing your education what do you hope to

    Here is the second part of my project. Please list what and why. (After finishing your education what do you hope to accomplish in your professional and personal life?
  2. Finance Homework/ Have 2nd Part Need Calculate1st

    An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value?
  3. Finance

    I have a case study to do and I'm not sure how to go about it. I need to find the present value for three different offers, all of which have a 10% rate and ordinary annuities. This is the first offer: $1,000,000 now $200,000 each …
  4. Finance

    determine the future value of education jenny franklin estimate that as result of completing her master degree , she will earn7000 a yeaar for the next 40 years. a. what would be the total amount of these additional earning
  5. personal finance

    Determining the future value of education. Jenny Franklin estimates that as a result of completing her master's degree, she will earn $7,000 a year more for the next 40 years. A.) what would be the total amount of these additional …
  6. finance

    Assume you are planning to invest $5,000 each year for six years and will earn 10 percent per year. Determine the future value of this annuity if your first $5,000 is invested at the end of the first year.
  7. Persoanl finance

    1. Jenny Franklin estimates that as a result of completing her master’s degree, she will earn $ 7,000 a year more for the next 40 years. a. What would be the total amount of additional earnings?
  8. Personal Finance

    determining the future value of education jennyfranklin estimates that as a result of completeing her naster's degree she will earn $7,000 a year more for the next 40 years what would be the total amountof these additional earnings?
  9. Finance

    Ken Braden estimates that taking some classes would result in earning $3,500 more a year for the next 30 years. Based on an annual interest rate of 5 percent, calculate the future value of these classes.
  10. Business

    Jenny Franklin estimates that as a result of completing her master’s degree, she will earn $7,000 a year more for the next 40 years. a. What would be the total amount of these additional earnings?

More Similar Questions