Question

You are told that having a college education increases a person's earnings by 30% over their lifetime. a non-college graduate earns about $30,000 per year. how much more will you earn with a college education over a 40 year career?

Answer 1

To start, determine how much a non-college graduate would earn over a 40 year period by multiplying their yearly salary by 40, 30,000*40=120,000. Next, increase it by 30%. Do this by taking 30% of 120k to find out how much more money you would make in comparison to a non-college grad, 120,000*.3=36,000. This means a college grad would make $36,000 more than a non-college grad.