Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $10,000 a year for the next 30 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 8 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
a)
total value of additional earnings
= 10000 * 30
= 30000
b)
Future value of annuity= payment per period * [(1+i)^n-1]/i
i = interest rate per period
n = number of periods
=>
Future value = 10000 * [(1+8%)^30 - 1]/8%
= 1132832
Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $10,000 a year for...
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Please show all steps. Thank you. 202-1 Determining the Future Value of Education ! Jewny Lopez estimates that as a result of completing coher Masters Degree, She will earn an additional oste avec les per the Next Løyears What would be the total amount of these ear Nings? mog alabas bWhat would be the future Value of these additional carving Use a financial caculator rate of tepercent ! Cuse or Exhibit 1-B in the Chapter 1 Appendixs not
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