Question
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?
40 yrs * 7,000/ yr = $280,000
I don't understand how to get this part?
b. What would be the future value of these additional earnings based on an annual interest rate of 6 percent?
$ 7,000 a year more for the next 40 years.
a. What would be the total amount of additional earnings?
40 yrs * 7,000/ yr = $280,000
I don't understand how to get this part?
b. What would be the future value of these additional earnings based on an annual interest rate of 6 percent?
Answers
Henry
See Sat,1-28-12,11:55am post.