Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

Mohawksgirl

  • 2 years ago

WDetermine 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. What would be the future value of these additional earnings based on an annual interest rate of 6%?

  • This Question is Closed
  1. SsgtSyms
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    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? (Use Table 1–B in the Chapter Overheads.) Solution: a. $7,000 × 40 = $280,000 b. $7,000 × 154.762 = $1,083,334

  2. SsgtSyms
    • 2 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    IF you have the same homework I have (Chapter 2) here are the rest of the questions and answers: 2. During a job interview, Pam Thompson is offered a salary of $28,000. The company gives annual raises of 6 percent. What would be Pam’s salary during her fifth year on the job? Solution: Year 1: $28,000 Year 2: $28,000 × 1.06 = $29,680 Year 3: $29,680 × 1.06 = $31,460.80 Year 4: $31,460.80 × 1.06 = $33,348.45 Year 5: $33,348.45 × 1.06 = $35,349.35 (Alternate solution: $28,000 × 1.262 (FV$1 6%, 4 years) = $35,336 3. 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 7 percent. (Use the tables in the Chapter overheads.) Solution: $2,000 × 94.461 = $188,922 4. Bill Mason is considering two job offers. Job 1 pays a salary of $36,500 with $4,500 of nontaxable employee benefits. Job 2 pays a salary of $34,700 and $6,120 of nontaxable benefits. Which position would have the higher monetary value? Use a 28 percent tax rate. Solution: Job 1: $36,500 + [$4,500/(1 - 0.28)] = $42,750. Job 2: $34,700 + [$6,120/(1 - 0.28)] = $43,200. 5. Helen Meyer receives a travel allowance of $180 each week from her company for time away from home. If this allowance is taxable and she has a 30 percent income tax rate, what amount will she have to pay in taxes for this employee benefit? Solution: $180 X 52 weeks = $9,360 X 0.30 = $2,808.

  3. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.