Question

Katya decided that she could not afford the $48,000 it would cost her to attend college and get her four-year degree. Instead, she entered the full-time workforce four years earlier than her peers who went to college. During those four years, she earned a total of $90,000. However, without a college degree, Katya made an average of $10,000 less than she could have with a degree every year for the 40 additional years of her career. What was the long-term financial cost of Katya deciding to not attend college?

Answer 1

Answer: $310,000

Explanation:

In 40 additional years, the amount she made less than her college counterparts was;

= 10,000 * 40

= $400,000

She however made $90,000 more than them as they went to college;

= 400,000 - 90,000

= $310,000

The long-term financial cost was $310,000.