Question

You give up a full time salary of $45,000 a year to go to school for two years that cost $30,000, to recover your investment in 5 years or less what is the minimum salary you need to earn

Answer 1

The minimum salary you need earn per year is $ 69, 000

Solution:

You give up a full time salary of $45,000 to go to school for two years

Find the salary for two years

Salary for two years = 45000 + 45000 = 90000

Thus salary for two years is $ 90,000

Cost for school is $ 30,000

Total cost: salary for two years + cost for school

30, 000 + 90, 000 = 120000

So you need to recover $ 120000 in total

To recover your investment in 5 years or less what is the minimum salary you need to earn

Therefore,

`\rightarrow (120000)/(5) = 24000`

So each year you would have to earn 45,000 + 24,000 = 69, 000

Thus the minimum salary you need earn per year is $ 69, 000