james has a job with a current salary of $42,000. he wants to earn a college degree that will take him 2…

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?\na. 1.3 years\nb. 2.5 years\nc. 10 years\nd. 20 years.\nplease select the best answer from the choices provided\no a\no b\no c\no d

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?\na. 1.3 years\nb. 2.5 years\nc. 10 years\nd. 20 years.\nplease select the best answer from the choices provided\no a\no b\no c\no d

Answer

Explanation:

Step1: Calculate total investment

The cost per - year of college is $28,000 and it takes 2 years, and he also loses 2 years of his current salary of $42,000 per year. The total cost of college is $28000\times2$ and the lost - income is $42000\times2$. The total investment $I=(28000 + 42000)\times2=70000\times2 = 140000$.

Step2: Calculate annual extra income

His new salary is $56,000 per year and his old salary was $42,000 per year. The annual extra income $E=56000 - 42000=14000$.

Step3: Calculate recovery time

The time $t$ to recover the investment is the total investment divided by the annual extra income. $t=\frac{I}{E}=\frac{140000}{14000}=10$.

Answer:

C. 10 years