19
QuizMultiple Choice

Career Planning

Question 19 • SHS Alt Personal Finance - 2021

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?

Answer
A
$51,000
B
$60,000
C
$69,000
D
$75,000

Explanation

The investment includes both the $30,000 school cost and the $90,000 salary you give up over two years ($45,000 × 2), for a total of $120,000. To recover $120,000 within five years, you need to earn $24,000 more per year than the $45,000 salary you gave up ($120,000 ÷ 5). That means a minimum salary of $69,000, choice C.

AI-written and checked against the verified answer.

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