Answer:
a. over 100,000
b. is more than 8 times
Explanation:
a.
Cost of four-year bachelor degree = Actual cost + opportunity cost
And
Actual cost = amount spent
opportunity cost = amount lost in not doing job just after high school
So ,
opportunity cost would be the 4 year salary of a high school graduate.
∴
Opportunity cost = 4 * yearly income of high school graduate
= $ 4 * 33900
= $ 135,600
Actual cost = 4 * yearly cost to attend college
= $ 4 * 25,290
= $ 101,160
As,
Total cost = Actual cost + opportunity cost
= $ 101,160 + 135,600
= $ 236,760
b.
Lifetime gain in pursuing bachelor degree over high school = life time earning of bachelor - lifetime earning of high school graduate
= 2,444,500 - 1,593,300 = 851,200 $
Hence,
the expenses of obtaining a bachelor degree is worth it because the increase in lifeime earning exceeds cost. [ cost = 236,760 $ , gain = 851,200 $ ]
So,
The expense of obtaining a bachelor's degree worth it because the increase in lifetime earnings is more than 8 times the cost
