Ben Bates graduated from college six years ago with a finance undergraduate degree.

Since graduation, he has been employed in the finance department at East Coast Yachts.

Although he is satisfied with his current job, his goal is to become an investment banker.

He feels that an MBA degree would allow him to achieve this goal. After examining

schools, he has narrowed his choice to either Wilton University or Mount Perry College.

Although internships are encouraged by both schools, to get class credit for the

internship, no salary can be paid. Other than internships, neither schools will allow its

students to work while enrolled in its MBA program.

Ben$$s annual salary at East Coast Yachts is $$50,000$ per year, and his salary is expected

to increase at $3\%$ per year until retirement. He is currently $28$ years old and expects to

work for $40$ more years. His current job includes a fully paid health insurance plan, and

his current average tax rate is $26\%.$ Ben has a savings account with enough money to

cover the entire cost of his MBA program.

The Ritter College of Business at Wilton University is one of the top MBA programs in the

country. The MBA degree requires two years of full$-$time enrollment at the university. The

annual tuition is $$65,000.$ Books and other supplies are estimated to cost $$2,500$ per year.

Ben expects that after graduation from Wilton, he will receive a job offer for about $$90,000$

per year, with a $$15,000$ signing bonus. The salary at this job will increase at $4\%$ per year.

Because of the higher salary, his average income tax rate will increase to $31\%.$

The Bradley School of Business at Mount Perry College began its MBA program $16$ years

ago. The Bradley School is smaller and less well known than the Ritter College. Bradley

offers an accelerated, one$-$year program, with a tuition cost of $$75,000.$ Books and other

supplies for the program are expected to cost $$3,500.$ Ben thinks that after graduation

from Mount Perry, he will receive an offer of $$78,000$ per year, with a $$12,000$ signing

bonus. The salary at this job will increase at $3\mathrm{.}5\%$ per year. His average income tax rate

at this level of income will be $29\%.$

Both schools offer a health insurance plan that will cost $$3,000$ per year. Ben also

estimates that room and board expenses will cost $$2,000$ at either school. The

appropriate annual interest rate is $6\mathrm{.}5\%.$

Use the problem$$solving approach to help Ben make a decision