Question

Jennifer is thinking about getting an MBA. She will give up making $27,500 a year for the two years it takes to complete the MBA. She will also pay $45,000 in total costs to get the degree. Assume she will make $67,500 a year after she gets her MBA.

Answer 1

is the question asking whether you think the MBA is worth it? if so it's a combination of mathematics and personal opinion;

she loses 2 years worth of income (2 * 27500) and the cost of the degree 45000

not taking into interest it will take [(2 * 27500) + 45000]/67500 = ~ 1.5 years to pay off the bills (however, interest will raise that significantly)

however, once her educational expenses are paid off, she gets to live with a higher income and more opportunities for further career advancement, so personally I say it's worth it