Final answer:
To recover her investment within 5 years, Jenn, having given up earning $10,000 annually for 3 years and spending $55,000 on school, would require a minimum new salary of $27,000 per year. The closest higher option provided is $35,000, making option b) the correct answer.
Step-by-step explanation:
To calculate the minimum salary Jenn would need to earn after getting her degree to recover her investment in 5 years or less, we must consider both the lost salary and the cost of going to school. Jenn gave up a part-time job earning $10,000 per year to go to school for 3 years, which amounts to $30,000 in lost earnings. The cost of school is $55,000. Therefore, the total cost of her education is the sum of these two amounts: $30,000 + $55,000 = $85,000.
Since Jenn wants to recover her investment in 5 years, she would need to earn this amount over that period. Dividing the total cost by 5 years gives us the amount Jenn needs to earn annually on top of her original salary to break even:
$85,000 รท 5 years = $17,000 per year over her original salary.
Jenn's original salary was $10,000, so the minimum new salary Jenn requires per year is:
$10,000 (original salary) + $17,000 (additional required income) = $27,000 per year.
Looking at the options provided: a) $25,000 b) $35,000 c) $45,000 d) $20,000, the closest higher option to $27,000 is $35,000. Thus, to recover her investment within 5 years, Jenn would need to earn a minimum salary of $35,000 which is option b).