00:01
Estimates that taking some classes would result in earning $3 ,700 more per year for the next 25 years.
00:09
Based on an annual interest rate of 9%, calculate the future value of these classes.
00:16
So what we're going to do is just think of this as investing $3 ,700 each year for 25 years at a rate of 9%.
00:26
So we need to find the right formula for this.
00:29
Estimate.
00:29
So taking some classes with the formula for the future value of an annuity.
00:33
So our future value is going to be our payment and then we're going to multiply that by 1 plus r raised to the n power minus 1 over r.
00:44
So let's plug this in.
00:46
Our payment is going to be $3 ,700.
00:49
We're going to do this times 1 plus.
00:52
Now since since this is annual, we can just use 0 .09...