Question

LaShelle is a teacher who wants to obtain her master's degree. She can do

this while working full-time if she attends evening and weekend classes. It
will take her three years to complete the degree, with a tuition cost of
$10,000 per year. After she has her master's degree, LaShelle will earn an
additional $2,500 per year in her teaching job. How long (in years) will it
take LaShelle to recover her financial investment in her master's degree?

Answer 1

It will take 12 years for LaShelle to recover her financial investment in her master's degree.

Explanation:

Given:

Tuition cost of Master's Degree =
`\$10,000 \ per \ year`

Number of years to complete Master's Degree = 3 years.

To calculate Total cost of Master's Degree we will multiply Tuition cost of Master's Degree per year with Number of years to complete Master's Degree.

Total Cost on Master Degree = Tuition cost of Master's Degree per year
`*` Number of years to complete Master's Degree =
`\$10,000 * 3= \$30,000`

Now after having Master's degree she will earn
`\$2500`

To calculate Number of years required to recover her financial investment in her master's degree we will divide Total Cost on Master Degree with earning after having Master's degree

Number of years required =
`\frac{\textrm{Total Cost on Master Degree}}{\textrm{earning after having Master's degree}}= (\$30000)/(\$2500)=12 \ years`

Hence it will take 12 years for LaShelle to recover her financial investment in her master's degree.