11
QuizMultiple Choice

Career Planning

Question 11 • SHS Alt Personal Finance - 2021

Niah works as a retail sales clerk earning $18,000 per year. She plans to go to school for medical billing that has a median salary of $35,000. The cost of her education will be $20,000. If Niah does not work for the 2 years that she is in school, about how long will it take her to recover her investment if she gets a medical billing job making the median salary when she graduates?

Answer
A
less than 1 year
B
1.2 years
C
1.6 years
D
3.3 years

Explanation

Niah gives up $18,000 per year for 2 years, or $36,000 in wages, and pays $20,000 for school. Her total investment is therefore $56,000. After graduation, she earns $35,000 instead of $18,000, an increase of $17,000 per year; $56,000 ÷ $17,000 is about 3.3 years. The best answer is 3.3 years.

AI-written and checked against the verified answer.

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