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
7,000 * 40 = ?
To determine the total amount of additional earnings Jenny Franklin would receive as a result of completing her master's degree, we need to calculate the future value of these earnings.
The future value can be calculated using the formula for compound interest:
FV = PV * (1 + r)^t,
where:
FV = future value
PV = present value (in this case, the additional earning per year, which is $7000)
r = annual interest rate (we'll assume it's 0 since there is no interest involved)
t = time period in years (40 years in this case)
Plugging in the values, we get:
FV = $7000 * (1 + 0)^40
= $7000 * 1^40
= $7000 * 1
= $7000
Therefore, the total amount of additional earnings Jenny Franklin would receive over the next 40 years would be $7000.