Omar is working at a job that pays $18,000 a year. Omar is now working in a job that pays $18,000 per year. He is contemplating a one-year automobile mechanics course that costs $1,000 for books and tuition. Omar estimates that the course will increase his income to $23,000 in each of the three years following completion of the course. At the end of those three years, Omar plans to retire to a commune in Boulder, Colorado. The current interest rate is 10 percent. Is it economically rational for Omar to enroll in the course?
Omar is working at a job that pays $18,000 a year. Omar is now working in a job that pays $18,000 per year. He is contemplating a one-year automobile mechanics course that costs $1,000 for books and tuition. Omar estimates that the course will increase his income to $23,000 in each of the three years following completion of the course. At the end of those three years, Omar plans to retire to a commune in Boulder, Colorado. The current interest rate is 10 percent. Is it economically rational for Omar to enroll in the course?
Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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![Omar is working at a job that pays $18,000 a year. Omar is now working in a job that pays
$18,000 per year. He is contemplating a one-year automobile mechanics course that costs
$1,000 for books and tuition. Omar estimates that the course will increase his income to
$23,000 in each of the three years following completion of the course. At the end of those three
years, Omar plans to retire to a commune in Boulder, Colorado. The current interest rate is 10
percent. Is it economically rational for Omar to enroll in the course?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6101b3a-9260-4acf-b297-68afbc41f57f%2F2fd17a18-c24a-44ac-b216-561d9ebc468a%2Fglqowcs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Omar is working at a job that pays $18,000 a year. Omar is now working in a job that pays
$18,000 per year. He is contemplating a one-year automobile mechanics course that costs
$1,000 for books and tuition. Omar estimates that the course will increase his income to
$23,000 in each of the three years following completion of the course. At the end of those three
years, Omar plans to retire to a commune in Boulder, Colorado. The current interest rate is 10
percent. Is it economically rational for Omar to enroll in the course?
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