# personal finance

posted by .

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 earnings? B.) what would be the future value of these additional earnings based on an annual interest rate of 6 percent?

• personal finance -

A. 40yrs * 7000/yr = \$280,000.

B. Pt = Po(1+r)^n.
r = APR = 6% = 0.06.
n = the # of compounding periods.

Pt = 7000(1.06)^40 = \$720,000.26.

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### fin 200 question

Jean will receive \$8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments?
2. ### Finance

Mr fish want to build a house in 10 years. he estimates that the total cost will be \$170,000. if he can put aside 10,000 at the end of the year, what rate of return must he return must he earn in order to have the amount needed?
3. ### Personal Finance

NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ANSWERS?
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. ### 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.
6. ### Persoanl finance

1. Jenny Franklin estimates that as a result of completing her masterâ€™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?
7. ### 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?
8. ### 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.
9. ### Business

Jenny Franklin estimates that as a result of completing her masterâ€™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?
10. ### Math: Finance

Need help solving these finance questions?

More Similar Questions