Information Sheet Project Overview: Throughout the semester, you will be working on an application based scenario on how to apply the course learning goals. All projects will be submitted through Excel. The "Info Sheet" (where you're now) will be the landing page for all of the information to complete each Learning Goal Project. Make sure to keep up with the schedule for the due dates and review the rubrics to make sure you know how each Project will be graded. Let's get started! Your Role: Fast forward, and you have recently graduated from college, and you remember taking PFI 2301 and are super excited to be financially literate as you enter your first career-related job. However, your friend did not take PFI 2301 and is trying to figure what to do with their finances. They have contacted you for some guidance. Being the awesome friend you are, you agree to walk them through the four personal finance elements (Basics, Borrowing, Building, & Protecting) you learned in class! Scenario: Get started reviewing the information under "Unit 3: Building" to learn more about your friend, Jessica's financial situation. Unit 3: Building - Using Your Current Income Tomorrow LG7-Understand the concepts of saving and investing and how it relates to human and financial capital accumulation Q8 Texas Tech Graduate Program Cost of Attendance Per-Year Number of Years Cost Attendance will Rise Per-Year $31,000 3 3.00% 09 Average Salary with Bachelor's Degree (Entry Level Accountant) Number of Years Cost of Living Raise Per-Year $58,500 3 4.00% Q11 Number of Years Earnings with a Master's Degree (Sr. Accountant) Earnings without a Master's Degree 15 $1,200,000 $877,500 Job Title Bank President Starting Salary Range 125,000-175,000 3 Responsibilities Build a loan syndication group. Provide vision for growing the bank's footprint and market share. Work diligently to provide a great relationship with the clients, partners, and vendors. 3 Qualifications Bachelor's Degree US work authorization Exceptional organizational skills Career Website Source(s) Used indeed.com Focus on YOU! Let's walkthrough your ROI of attending college! Research tuition costs for one year, along with what is the average salary with a high school diploma. Also, research what your earnings would be for over 20 years with a degree and without a college degree. Make sure to site your work below. 22 Number of Years Cost of Attendance will Rise Per-Year Cost of Living will Raise Per-Year Number of Years Average Salary with a High School Diploma Texas Tech Tuition Cost Per-Year 4 2.80% 3.20% 20 32,986.00 14,730.00 S S NPER 33 How much is a 4-year degree going to cost you? Reminder. Show the TVM inputs and calculate in Excel RATE 2.80% PV 55,015.74 $ PMT 14,730.00 $ FV 61,441.16 4 $ NPER 4 How much money you will have forgone while attending school? Reminder. Show the TVM inputs and calculate in Excel RATE 3.20% PV $ 122,028.05$ PMT FV 32,986.00 $ 138,413.50 4 5 What is the total cost? S 177,043.79 26 First career related job title (right after graduation) Next 20 years, earning expectation amount with a college degree Next 20 years, earning expectation amount without a college degree What is the 20 yr. ROI of going to college? Reminder. Show the TVM inputs and calculate in Excel Bank President $ 1,200,000.00 $ 800,000.00 NPER RATE PV PMT FV Application Time! Jessica is thinking about going back to school full time and receive a Master's in Accounting. Part of her decision will be based on the return on investment of Graduate School. Help Jessica find the ROI of going back to school (1) you will need to pull the data from the "Info Sheet' and (2) solve for the missing information. 8 How much is going back to school going to cost? Reminder. Show the TVM inputs and calculate in Excel. NPER RATE PV 87,686.95 S PMT 31,000.00 $ FV 95,817.90 3.00% S NPER 9 How much money will be forgone will attending school? Reminder. Show the TVM inputs and calculate in Excel RATE 14.00% PV 162,342.83 PMT 58,500.00 $ FV 182,613.60 10 What is the total cost? (cost of college + forgone salary) S 250,029.78 NPER RATE PV PMT FV 11 What is the 15 yr. ROI of attending graduate school? Reminder. Show the TVM inputs and calculate in Excel. 12 Is this is a good ROI or not? I believe this is a good ROI, since this proves that a higher education can lead to higher salaries. List at least 3 other factors besides ROI that Jessica should consider. Potential future earning grow beyond 15 years due to her learning more. Career progressions are better in the long-run since the graduate program will allow her to take on more roles in the future. Interest expenses on student loans are usually tax deductible and can be used to offset her future incomes. Information Sheet Project Overview: Throughout the semester, you will be working on an application based scenario on how to apply the course learning goals. All projects will be submitted through Excel. The "Info Sheet" (where you're now) will be the landing page for all of the information to complete each Learning Goal Project. Make sure to keep up with the schedule for the due dates and review the rubrics to make sure you know how each Project will be graded. Let's get started! Your Role: Fast forward, and you have recently graduated from college, and you remember taking PFI 2301 and are super excited to be financially literate as you enter your first career-related job. However, your friend did not take PFI 2301 and is trying to figure what to do with their finances. They have contacted you for some guidance. Being the awesome friend you are, you agree to walk them through the four personal finance elements (Basics, Borrowing, Building, & Protecting) you learned in class! Scenario: Get started reviewing the information under "Unit 3: Building" to learn more about your friend, Jessica's financial situation. Unit 3: Building - Using Your Current Income Tomorrow LG7-Understand the concepts of saving and investing and how it relates to human and financial capital accumulation Q8 Texas Tech Graduate Program Cost of Attendance Per-Year Number of Years Cost Attendance will Rise Per-Year $31,000 3 3.00% 09 Average Salary with Bachelor's Degree (Entry Level Accountant) Number of Years Cost of Living Raise Per-Year $58,500 3 4.00% Q11 Number of Years Earnings with a Master's Degree (Sr. Accountant) Earnings without a Master's Degree 15 $1,200,000 $877,500 Job Title Bank President Starting Salary Range 125,000-175,000 3 Responsibilities Build a loan syndication group. Provide vision for growing the bank's footprint and market share. Work diligently to provide a great relationship with the clients, partners, and vendors. 3 Qualifications Bachelor's Degree US work authorization Exceptional organizational skills Career Website Source(s) Used indeed.com Focus on YOU! Let's walkthrough your ROI of attending college! Research tuition costs for one year, along with what is the average salary with a high school diploma. Also, research what your earnings would be for over 20 years with a degree and without a college degree. Make sure to site your work below. 22 Number of Years Cost of Attendance will Rise Per-Year Cost of Living will Raise Per-Year Number of Years Average Salary with a High School Diploma Texas Tech Tuition Cost Per-Year 4 2.80% 3.20% 20 32,986.00 14,730.00 S S NPER 33 How much is a 4-year degree going to cost you? Reminder. Show the TVM inputs and calculate in Excel RATE 2.80% PV 55,015.74 $ PMT 14,730.00 $ FV 61,441.16 4 $ NPER 4 How much money you will have forgone while attending school? Reminder. Show the TVM inputs and calculate in Excel RATE 3.20% PV $ 122,028.05$ PMT FV 32,986.00 $ 138,413.50 4 5 What is the total cost? S 177,043.79 26 First career related job title (right after graduation) Next 20 years, earning expectation amount with a college degree Next 20 years, earning expectation amount without a college degree What is the 20 yr. ROI of going to college? Reminder. Show the TVM inputs and calculate in Excel Bank President $ 1,200,000.00 $ 800,000.00 NPER RATE PV PMT FV Application Time! Jessica is thinking about going back to school full time and receive a Master's in Accounting. Part of her decision will be based on the return on investment of Graduate School. Help Jessica find the ROI of going back to school (1) you will need to pull the data from the "Info Sheet' and (2) solve for the missing information. 8 How much is going back to school going to cost? Reminder. Show the TVM inputs and calculate in Excel. NPER RATE PV 87,686.95 S PMT 31,000.00 $ FV 95,817.90 3.00% S NPER 9 How much money will be forgone will attending school? Reminder. Show the TVM inputs and calculate in Excel RATE 14.00% PV 162,342.83 PMT 58,500.00 $ FV 182,613.60 10 What is the total cost? (cost of college + forgone salary) S 250,029.78 NPER RATE PV PMT FV 11 What is the 15 yr. ROI of attending graduate school? Reminder. Show the TVM inputs and calculate in Excel. 12 Is this is a good ROI or not? I believe this is a good ROI, since this proves that a higher education can lead to higher salaries. List at least 3 other factors besides ROI that Jessica should consider. Potential future earning grow beyond 15 years due to her learning more. Career progressions are better in the long-run since the graduate program will allow her to take on more roles in the future. Interest expenses on student loans are usually tax deductible and can be used to offset her future incomes