Personal Finance 1st Edition by Jack R. Kapoor

Exercise 27

Future Value of Advanced Training. Ken Braden estimates that taking some classes would result in earning $3,500 more a year for the next 30 years. Based on an annual interest rate of 4 percent, calculate the future value of these classes.

Step 1 of 2

Person KB is planning to take some classes as these classes allow him to earn $3,500 a year up to 30 years. He can earn interest at 4%. Thus, future value of the classes will be depended on the same interest rate.