Studies concluded that college graduation is a very good investment. Suppose a college graduate makes 75 percent more money per hour than a graduate from high school. If a High School graduate's lifetime earnings average $1,200,000, what is the expected value of college graduation?
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Studies concluded that college graduation is a very good investment. Suppose a college graduate makes 75 percent more money per hour than a graduate from high school. If a High School graduate's lifetime earnings average $1,200,000, what is the expected value of college graduation?
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- Studies have concluded that a college degree is a very good investment. Suppose that a college graduate earns about 75% more money per hour than a high school graduate. If the life time earnings of a high school graduate average $1,200,000, what is the expected value of earning a college degree?If the price of attending Big Benefits University is $8,000 a year for tuition, fees, books, and and $25,000 in foregone earnings, what is the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate? If the average college graduate makes $38,000 more every year than the average high school graduate, what is the cumulative marginal benefit of a college education if the average college graduate works for 40 years, assuming a 3% inflation rate? c.In this scenario does it make sense to go to college, explain your answer.John is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the cost to attend Texas Tech, including room and board, is $24,044 per year. He also assumes costs will rise by 6% per year. How much is a 4-year degree going to cost, John? N 4 I/Y PV 0 PMT FV
- Assume the total cost of a college education will be $350,000 when your child enters college in 15 years. You presently have $67,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?A college savings education plan claims that had you invested $375 per month in the plan for the last 16 years you would have accumulated $280,000. Assuming the investments were made at the end of each month, calculate the effective annual rate of return an investor would have received on a compounded basis using either Goal Seek or Solver.What is the Net Present Value (NPV) and internal rate of return (IRR) of spending $10,000 today on graduate school when you earn $40,000/year today and will earn $42,000/year for the next 35 years after grad school. Assuming you could invest this money elsewhere and earn 10%?
- Assume the total cost of a college education will be $345,000 when your child enters college in 18 years. You presently have $55,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?Assume the total cost of a university education will be €290,000 when your child enters college in 18 years. You presently have €40,000 to invest. Required: What annual rate of interest must you earn on your investment to cover the cost of your child’s university education? (Round your answer to 2 decimal places (e.g., 32.16).) Annual rate of interest %You want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an interest rate of 10% compounded annually, how many years will it take to accumulate the required amount?
- Mark is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates costs to attend Texas Tech for 4 years including room and board are $20,000 per year. He also assumes tuition costs will rise by 3.5% per year. How much is a 4-year degree going to cost Mark? $92,183.27 $84,298.86 $7,231,158.87 $1,314,002.83You estimate a college education will be $300,000 when your child enters college in 18years. You presently have $70,000 to invest. What annual rate of interest must you earn on yourinvestment to cover the cost of your child’s college education?You just started working as a fresh graduate and you have ghc10,000 to invest to enable you start your own business in fifteen years. Evaluate five factors you would consider in selecting among investment alternatives before investing your money, using relevant scenarios?
