Question

Bob decided to go to college, the cost of going to school will be $4,474 per semester, (there are 2 semesters per year) plus $389 per semester for books. His degree will take 4 years. If he wants to pay off his investment in 10 years or less what is the minimum increase in yearly salary he would need to earn upon finishing his degree.

Answer 1

Explanation:

1 semester = 4474

8 semester = 8* 4474 35792

1 semester books = 389

8 semester books = 8* 389 3112

Total 38904

If he is going to pay this off in 10 years, he would have to have an increase of 3890.40 (after all income taxes) to pay it off. Fewer years would mean dividing by the number of years.

So for 8 years for example, he would need 4863 every year.

That number is obtained by dividing 38904 / 8

In 6 years he would need

38904/6 = 6484 extra dollars.