Question

Ruby, age 50, is considering going back to school. She would like to retire at age 67. She currently earns $50,000 per year. If she goes back to college and completes a graduate degree, she will earn $55,000 per year. If the total cost of the graduate degree is $75,000, Ruby should:

Answer 1

Answer:

Ruby should go to college.

Explanation:

Ruby is currently 50 years old and earning $50,000 per year.  

She would like to retire at 67.  

She is thinking of going back to college, to complete a graduate degree.

After completing a graduate degree from the college she would earn $55,000.

The total cost of a graduate degree is $75,000.  

Ruby still has 17 years to work and earn.  

Her income will increase by $5,000 after college

The increase in income earned after college until retirement

= $5,000 $\times$ 17

= $85,000

Since the increase in income is greater than the cost of going to college, Ruby should go to college.