Jenny Franklin estimates that as a result of completing her master's degree, she will earn $15,000 a year more for the next 25 years.
(a) What would be the total amount of these additional earnings?
Additional earnings $
(b) What would be the future value of these additional earnings based on an annual interest rate of 7 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to nearest whole dollar.) Please explain in detail and show your work.
Future value $