Question
I am trying to see if I am calculating correctly. Please check my calculations and advise if I am incorrect. To help him determine if
I am trying to see if I am calculating correctly. Please check my calculations and advise if I am incorrect.
To help him determine if it really is worth it to get a college education John wants to see what the return on investment (ROI) will be 20 years after graduation. After some research John discovers that for his career choice he can expect to earn $1.6 million with a degree and $809,000 without one. What is Johns 20 year ROI?
John's Initial Investment for Tuition/book/lost wages is: $243,979.28 and used for this calculation:
| PV | -243,979.28 |
| N | 20 |
| PMT | 39,550/yr |
| I/Y | 15.829 |
John's 20 year ROI is 15.83%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started