Question

Julissa is thinking about getting her Master’s degree. She will give up making $28,000 a year for the 2 years it takes to complete the program. She will also pay $34,000 in total costs to get the degree. Assuming that she will make $60,000 a year after she completes her degree, how long will it take for her to recover her investment?

Answer 1

1.5 years

Explanation:

She will give up making $28,000 per year for 2 years. This means that she will give up making $56,000 in total.

$28,000 × 2 = $56,000

She also pay $34,000 in total to costs to get her degree. She invested a total of $90,000.

$56,000 + $34,000 = $90,000

After graduating, she makes $60,000 a year. It will take her 1.5 years to recover her investment.

90,000/60,000 = 1.5