James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be $56,000 per year. How many years will it take James to recover his investment?

Question

James has a job with a current salary of $42,000. He wants to earn a college degree that will take him 2 years to complete and it will cost $28,000 per year.  He will go to school full time and will not be able to work.  Upon graduation, James' new salary will be $56,000 per year.  How many years will it take James to recover his investment?

anonymous · Answer

is the lack of income in the 2 years also an investment ?

anonymous · Answer

difference salary: $56,000 - $42,000 = $14,000

it will take 2 years of the new salary to pay off $28k