What is the opportunity cost of going to college this term?
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Suppose your expenses for summer school are as follows: tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part-time and earn $4,000 instead of your full-time salary of $10,000. What is the opportunity cost of going to college this term?
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- Suppose your expenses for this term are as follows: tuition: $12,000, room and board: $6,500, books and other educational supplies: $1,500. Further, during the term, you can only work part-time and earn $3,500 instead of your full-time salary of $14,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? $13,500 $20,000 $24,000 $30,500(a) A student invests $150,000 at 9% compound interest to pay for the courses she will take in the spring semester in three years’ time. She expects the total costs for the spring semester in three years’ time to be $205,000. (i) What is the accumulated amount she would have available in three years’ time? (ii) Would she be able to cover her semester fees? (iii)What if the student borrows the $205,000 at 32% simple interest for 24 months; How much money would she have to repay at the end of the 24-month period? (iv)Discuss any other options the student could have tapped into to secure the semesters ‘fee.The median annual income for someone with an Associates Degree is $31,936. The median annual income for someone with a Bachelor's Degree is $45,221. Suppose you have an associate's degree. If you quit your job and go back to school to study two years for a bachelor's degree, it will cost you $55,000 in tuition and fees plus approximately $64,000 in lost earnings. After graduation, how long will it take you to earn back that money?
- Jenny Jenks has researched the financial pros and cons of entering into a 1-year MBA program at her state university. The tuition and needed books for a master's program will have an upfront cost of $51,000. If she enrolls in an MBA program, Jenny will quit her current job, which pays $50,000 per year after taxes (for simplicity, treat any lost earnings as part of the upfront cost). On average, a person with an MBA degree earns an extra $21,000 per year (after taxes) over a business career of 39 years. Jenny believes that her opportunity cost of capital is 5.3%. Given herestimates, find the net present value (NPV) of entering this MBA program. Are the benefits of further education worth the associated costs? The net present value (NPV) of entering this MBA program is Are the benefits of further education worth the associated costs?Because you study at AUIS when you graduate, we expect you to earn $150 more a month than another student who is graduated from another university in Iraq. If you invest and earn 10% interest annually compounding semi-annually on the extra $150 you have earned for your entire working life from age of (22 – 65). What extra value studying at AUIS has given to you? in another-word, what is the future value of the extra money you have earned?After graduation, you have been offered an engineering job with a large company that has offices in Tennessee and Pennsylvania. The salary is $55,000 per year at either location. Tennessee’s tax burden (state and local taxes) is 6% and Pennsylvania’s is 3.07%. If you accept the position in Pennsylvania and stay with the company for 10 years, what is the FW of the tax savings? Your personal MARR is 10% per year.
- As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree; remember to account for the “cost” of…As a recent graduate with an associate degree in Business, you are trying to determine if getting a Bachelor’s degree is worth the money. To help make the decision, you should evaluate the present value of the cash flows from possessing an associate degree versus possessing a bachelor’s degree. Researching current tuition fees and employment data has yielded the following information: * Annual Tuition and costs for a CSU: $10,000 (Assume this covers all expenses: tuition, books, etc.) * Time to Compete: 2 years * Average Salary with associate degree only: $35,000 * Average Salary with bachelor’s degree: $55,000 * Present Value of 10% Discount Rate Assume you will earn the above salaries for ten years. Use the present value tables to complete the following: 1. Determine the Net Present Value of the Cash Flows from the associate degree; there is no tuition cost as you have already completed the degree. 2. Determine the Net Present Value of the Cash Flows from the bachelor’s degree;…Pete Morton is planning to go to graduate school and a program of study that will take three years Pete wants to have $10,000 available each year for various school and living expenses if he earns 4% on his money how much mass he deposit at the start of his studies to be able to withdraw $10,000 a year for three years
- Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $21,000 this year. He expects these costs to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 4%? If he earns an extra $15,000 annually for 40 years, what is the present worth of his 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.You're a graduate and the company that hires you offers a job that includes a paid apartment in Austin. You only need to pay for services and maintenance. You go ahead and make calculations and come up that each year you need to pay $36,000 to cover all expenses. Each year it sums up to $36,500 and every consequent year increasing by $500 through year 10. At an interest rate of 10% per year, the present worth of the maintenance costs are going to be how much?