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?

studygurl14 · Answer

28000(2 years) = $56,000
42,000(2 years unable to work) = $84,000
56,000 + 84,000 = $140,000
140,000 ÷ 56,000 = 2.5 years

This is if the two years of not being able to work is included. If not, then it would only take him one year to earn back his investment.