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?
a.
$51,000
b.
$60,000
c.
$69,000
d.
$75,000

Alright, this is a tricky one!

First, you need to assume that by giving up your full-time salary of $45k, you will be taking a loss of $45k per year. Therefore, because you're going to school for 2 years - you'll have a loss of $90k.

Then, from there you take out a loan for $30k for school. With the addition of your student loan, you're now in debt / at a loss of $120k. Therefore, you're total investment is $120k. Divide that by 5 years, and you get $24k.

Lastly, you have to consider your original annual salary of $45k with the addition of your recover investment per year of $24k. That would be $45k + $24k = $69k. Therefore, the minimum salary you would need to earn upon earning your degree would be $69k.

I believe the answer is C.