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10 votes
10 votes
You give up a full-time salary of $52,000 a year to go to school for 2 years. The total cost of going to school is $36,000. If you want to be able to recover your investment in 4 years or less, what is the minimum salary you would need to earn upon earning your degree?

User Richard Williams
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2 Answers

22 votes
22 votes

Final answer:

To recover the investment in 4 years or less, you would need to earn a minimum salary of $88,000 upon earning your degree.

Step-by-step explanation:

To determine the minimum salary needed to recover the investment in 4 years or less, we need to calculate the total salary given up during the 2 years of school and add it to the total cost of going to school. Subtracting this sum from the total desired recovery amount will give the minimum salary needed upon earning the degree.

  1. Calculate the total salary given up: $52,000/year * 2 years = $104,000
  2. Calculate the total cost of going to school: $36,000
  3. Add the total salary given up and the total cost of going to school: $104,000 + $36,000 = $140,000
  4. Subtract the desired recovery amount from the sum: $140,000 - $52,000 = $88,000

Therefore, the minimum salary you would need to earn upon earning your degree is $88,000.

User Itiel
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2.8k points
19 votes
19 votes

Answer:

$9000

Step-by-step explanation:

36000:4=$9000

User Chamanhm
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2.9k points