Question

alistar has an annual income of $25,000 he decides to take classes on line at night so that he can continue to work. after 3 years he gets his degree and immediately starts earning $32,000 per year. if it takes him 6 years to revover his investments for his education, how much did it cost him

Answer 1

It costed him 7,000*6 which would be $42,000

Answer 2

Total cost = $42000

Explanation:

Alistar’s 6-year investment plan consists of two periods :

Period 1 : From year 1 to year 3

Period 2 : From year 4 to year 6

In the first period, from year 1 to 3,

Alistar make investment on his education.

In the second period, from year 4 to 6,

Amount which he starts earning = $32000

And the annual income of him = $25000

⇒ Alistar receives additional $7000 every year

Now, time taken to recover his investments = 6 years

Hence, Total cost = 7000 × 6

= $42000