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Did I answer these questions correctly? John is trying to decide if he should attend college or not. Part of his decision will be based

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John is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the per year cost to attend Texas Tech including room and board is $24,044. He also assumes tuitions costs will rise by 6% per year. How much is a 4 year degree going to cost John? N = 4 l/Y = 6 PV = 0 PMT = -24,044 FV= $105,183.27 John recognizes that not only will he have the costs of attending school but he will also be giving up a salary while he attends school. He figures the average salary for those with only a high school diploma is $33,176. He assumes he would receive a 3% cost of living raise each year. Determine how much money he will forgo while attending school. $33,176 (4) =$132,704 N = 4 l/Y =3 PV = o| PMT = -33,176 FV= $138,796.01 If John adds the cost of college with the salary he will forgo by attending college he finds it will cost: $243,979.28 in total. (Keep in mind that this does not include any interest on loans needed to pay for school). $105,183.27 + $138,796.01 = $243,979.28 John is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. He estimates that the per year cost to attend Texas Tech including room and board is $24,044. He also assumes tuitions costs will rise by 6% per year. How much is a 4 year degree going to cost John? N = 4 l/Y = 6 PV = 0 PMT = -24,044 FV= $105,183.27 John recognizes that not only will he have the costs of attending school but he will also be giving up a salary while he attends school. He figures the average salary for those with only a high school diploma is $33,176. He assumes he would receive a 3% cost of living raise each year. Determine how much money he will forgo while attending school. $33,176 (4) =$132,704 N = 4 l/Y =3 PV = o| PMT = -33,176 FV= $138,796.01 If John adds the cost of college with the salary he will forgo by attending college he finds it will cost: $243,979.28 in total. (Keep in mind that this does not include any interest on loans needed to pay for school). $105,183.27 + $138,796.01 = $243,979.28

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