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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

Verified Answer :

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:

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.

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