Question

You give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?
a.
$51,000
b.
$60,000
c.
$69,000
d.
$75,000

Answer 1

I say that answer would be C:

2 years of lost wages 
(45K+45K) = 90K 
TOTAL cost of school = 30K 

sum of investment 
(90K+30K) = 120K 

5 years to recover investment 
(120K/5yrs) = 24K per year 

Salary plus amount required to recover investment 
(24K+45K) = 69K


I hope my answer has come to your help. God bless and have a nice day ahead!

Answer 2

Answer:

Option c., $69,000

Step-by-step explanation:

Full time salary amount for 2 years = $45,000 × 2

                                                          = $90,000

Total cost of going to school = $30,000

If i want to recover the investment in 5 years or less then minimum salary i will need

$=\text{Salary of the month}+\frac{\text{total amount invested}}{5}$

= $45000+\frac{((90000+30000)}{5}$

=  $45000+\frac{((120000)}{5}$

= 45,000 + 24,000

= $69,000

Therefore, Option C will be the answer.