Suppose John is going to decide whether to go to college or find a job after high school graduation, which option would you recommend? Consider based on the potential yearly tuition at $20,000 for four years, the expected salary for college graduate would be $60,000 every year, the expected salary for high school graduate would be $25,000 every year. Assume an interest rate of about 5%.
Suppose John is going to decide whether to go to college or find a job after high school graduation, which option would you recommend? Consider based on the potential yearly tuition at $20,000 for four years, the expected salary for college graduate would be $60,000 every year, the expected salary for high school graduate would be $25,000 every year. Assume an interest rate of about 5%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Suppose John is going to decide whether to go to college or find a job after high school
graduation, which option would you recommend? Consider based on the potential
yearly tuition at $20,000 for four years, the expected salary for college graduate would
be $60,000 every year, the expected salary for high school graduate would be $25,000
every year. Assume an interest rate of about 5%.
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Information Provided:
- Interest rate = 5%
- Tuition cost = $20,000
- Period of tuition cost = 4 years
- Salary of college graduate = $60,000
- Salary of school graduate = $25,000
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