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Examples Of Return On Investment From College Education

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Return on investment from college education
Student Name
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Part 1:
Pursuing higher education enhances the employability of an individual. Higher education paves way for more opportunities which cannot be obtained with ordinary graduation. Completing MBA (Master in Business Administration) from a good institute adds more value to the individual profile and these institutes provides for good placement assistance too. MBA will enable the individual to climb up the ladder in the management hierarchy.

Higher education provides for an opportunity to learn more of different subjects and to get in-depth knowledge about the subject in which the candidate wants to specialize. Good institution
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Part 2:
After successful completion of the course, the desired occupation will be to become an investment banker. Investment banker draws higher salary and they have broad career spectrum. There are more opportunities in this industry with an MBA degree both in domestic and in international market. The annual remuneration ranges from $80,000 to $150,000 this for the entry-level with MBA degree in the market. The industrial average regarding the signing bonus which can be earned is $46,000 and guaranteed average bonus is $38,000.

In this case, with the above statistical data it is clear that minimum average salary an MBA degree holder can earn after two years will be $110,000 with the signing bonus of $46,000 and a guaranteed bonus amounting $38,000. The amount to be received at the time of joining the job is $46,000 and the year-end annual compensation will be $148,000. The annual salary is expected to grow a minimum of 6% to 8% every year based on the performance. Minimum growth rate for the first four years is assumed to be 7% and more than 8% that is about 10% for the remaining years. Educational loan will be obtained for 2 years with condition to repay them after the placement confirmation. The loan interest is about 6.5% with 5 year time period; this will result in an annual payment of $47,453.13
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