What is the forgone lost future value at six percent


Economic Trade-off of Graduate School. DeloresSotomajor hopes to earn an extra $600,000 over herremaining 40-year working career by going to nightschool to obtain a master's degree. If her income projectionis correct, that's an average of $15,000 more incomea year. Delores's employer is willing to pay $45,000toward the $60,000 schooling costs, so she must pay out$15,000 of her own money.(a) What is the forgone lost future value of her$15,000 over the 40 years at 6 percent? (b) What would be the forgone lost future value of$60,000 over 40 years if Delores had to pay allthe costs for her master's degree?

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