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 dollars 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 dollars 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's investment is $I_{F}=6500$. He makes $6000$ more per year after graduating. The time $t_{F}$ to recover his investment is $t_{F}=\frac{6500}{6000}\approx1.083$ years after graduating. Since he graduated in 1.5 years, his total time from starting school to recovering investment is $T_{F}=1.5 + 1.083=2.583$ years.

Step2: Calculate Lynn's pay - back time

Lynn's investment is $I_{L}=3500$. She makes $6000$ more per year after graduating. The time $t_{L}$ to recover her investment is $t_{L}=\frac{3500}{6000}\approx0.583$ years after graduating. Since she graduated in 2 years, her total time from starting school to recovering investment is $T_{L}=2 + 0.583 = 2.583$ years.

Answer:

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