Question

Lindsey’s college will cost her a total of $6,000 a year for the next 3 years. She is also foregoing making $26,000 a year at the local mall. What is her total investment in education if she doesn't work at all and finishes in 3 years?

Answer 1

Answer:

$18,000

Explanation:

If Lindsey’s college will cost her a total of $6,000 a year, for the next three years the total cost will be 3×$6,000 which gives $18,000.

Note that she is only foregoing making $26,000 a year at the local mall therefore if she doesn't work at all, she won't make any money but will keep paying for her college fee.

Her total investment in education if she doesn't work at all and finishes in 3 years will remain the amount she paid for 3years in college which is $18000

Answer 2

Answer: Lindsey's total investment in education is $18,000.

Since Lindsey's college will cost a total of $6000 per year for the next three years, her total investment in education will be  $6000*3 = 18,000$.

The $26000 per year that's given in the question is the value of Lindsey's earnings if she chose to work at the local mall. This is the gain Lindsey foregoes in each of the three years in order to learn, and represents her opportunity cost or alternate costs.