Question

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment?

Answer 1

Answer:

2.5 years

Step-by-step explanation:

Given James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment?

The current salary of James is $42,000. So for 2 years he will earn                    42,000 x 2 = 84000.

For one year the cost of his education is $28,000. Therefore for 2 years it will be $56000.

The sum will be 84,000 + 56,000 = 1,40,000.

By dividing $1,40,000/$56,000 we get 2.5 years.

James will take 2.5 years to recover his investment.