Personal Finance

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.

asked by Marie
  1. 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 = ?

    posted by helper
  2. 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?

    posted by michael
  3. 20,1254

    posted by Patricia
  4. 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?

    posted by jessi

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