you give up a full - time salary of $45,000 a year to go to school for 2 years. the total cost of going to…

you give up a full - time salary of $45,000 a year to go to school for 2 years. the total cost of going to school is $30,000. if you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?\n a. $51,000\n b. $60,000\n c. $69,000\n d. $75,000\n please select the best answer from the choices provided

you give up a full - time salary of $45,000 a year to go to school for 2 years. the total cost of going to school is $30,000. if you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree?\n a. $51,000\n b. $60,000\n c. $69,000\n d. $75,000\n please select the best answer from the choices provided

Answer

Answer:

C. $69,000

Explanation:

Step1: Calculate total investment

The opportunity - cost of giving up a full - time salary for 2 years is $45000\times2=$90000$, and the cost of going to school is $30000$. So the total investment is $90000 + 30000=$120000$.

Step2: Calculate minimum annual salary

To recover the investment in 5 years, the minimum annual salary $x$ should satisfy $5x\geq120000$. So $x=\frac{120000}{5}=$24000$ more than the original salary. The original full - time salary was $45000$, so the new minimum salary is $45000+24000 = $69000$.