frank and lynn are co - workers getting paid the same salary. they both decide to quit their jobs and start…

frank and lynn are co - workers getting paid the same salary. they both decide to quit their jobs and start going to school on the same day. frank gets a degree after just 18 months and spends $6,500 on his education. lynn only spends $3,500, but it takes her 2 years to get her degree. assuming that they each will make $6,000 more per year after graduating, which of the following is true? a. frank will recover his investment at an earlier date than lynn. b. lynn will recover her investment at an earlier date than frank. c. frank and lynn will recover their investments on the same date. d. there is not enough information given to know who will recover their investment first. please select the best answer from the choices provided

frank and lynn are co - workers getting paid the same salary. they both decide to quit their jobs and start going to school on the same day. frank gets a degree after just 18 months and spends $6,500 on his education. lynn only spends $3,500, but it takes her 2 years to get her degree. assuming that they each will make $6,000 more per year after graduating, which of the following is true? a. frank will recover his investment at an earlier date than lynn. b. lynn will recover her investment at an earlier date than frank. c. frank and lynn will recover their investments on the same date. d. there is not enough information given to know who will recover their investment first. please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate Frank's pay - back time

Frank spends $6500 on education. He makes $6000 more per year. Let $t_{1}$ be the time in years to recover the investment. Using the formula $t_{1}=\frac{6500}{6000}\approx1.083$ years after graduating. He graduates in 1.5 years, so in total, it takes him $1.5 + 1.083=2.583$ years from the start.

Step2: Calculate Lynn's pay - back time

Lynn spends $3500 on education. She makes $6000 more per year. Let $t_{2}$ be the time in years to recover the investment. Using the formula $t_{2}=\frac{3500}{6000}\approx0.583$ years after graduating. She graduates in 2 years, so in total, it takes her $2 + 0.583 = 2.583$ years from the start.

Answer:

C. Frank and Lynn will recover their investments on the same date.