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?
a) $30,000
b) $120,000
c) $240,000
d) $360,000

Answer 1

Earnings for 40 years without college are $30,000*40=$1,200,000
With college education you will earn $1,200,000*0.3=$360,000 more.
Answer: d)