102
QuizMultiple Choice

Topic Test

Question 102 • WWT - Financial Math A

Mark currently works part-time with a salary of $8,000 per year. Mark plans to quit working and attend college for 4 years. If his college costs will total $64,000, how long will it take Mark to recover his investment assuming he has a salary of $32,000 upon graduating?

Answer
A
2 years
B
3 years
C
4 years
D
5 years

Explanation

Include both college costs and the income Mark gives up while attending. He forgoes 4 × $8,000 = $32,000, so his total investment is $64,000 + $32,000 = $96,000. After graduating, he earns $32,000 − $8,000 = $24,000 more per year than before, so $96,000 ÷ $24,000 = 4 years. The answer is 4 years.

AI-written and checked against the verified answer.

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