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oshua Kelly estimates that taking some classes would result in earning $13,400 more a year for the next 30 years. Based...

oshua Kelly estimates that taking some classes would result in earning $13,400 more a year for the next 30 years. Based on an annual interest rate of 9 percent, calculate the future value of these classes. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)

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Answer #1

Future value = Annuity * [(1 + r)n - 1]/r

Future value = 13,400 * [(1 + 0.09)30 - 1]/ 0.09

Future value = 13,400 * 136.307539

Future value = $1,826,521.02

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