Final answer:
It will take James 4 years to recover his investment in his college education, as he will have to pay $56,000 for college and will earn an additional $14,000 yearly after graduation.
Step-by-step explanation:
The question asks how many years will it take James to recover his investment in his college education. To find the answer, we need to calculate the total cost of the college degree and the increase in James' annual income post-graduation. The total cost for two years of college is $28,000 per year for a total of $56,000. After graduation, James' salary increased from $42,000 to $56,000, which is a $14,000 annual increase. To recover his investment of $56,000, we divide the total cost by the annual increase in salary: $56,000 ÷ $14,000 = 4 years. Therefore, it will take James 4 years to recover his cost of college.
Given that the cost of college is increasing every year and working full time at minimum wage is not enough to cover these costs, further education can still be a valuable investment. According to the data, those with higher educational attainment like a college degree can expect higher wages and lower unemployment rates. However, the increasing student loan debt is a significant issue to consider. In James’ case, his investment in a two-year degree can potentially yield a substantial increase in his lifetime earnings.