The average wage for a person with a high school diploma is about 40,000 dollars per year while the average wage for a person with a bachelor's degree is 68,000 per year. Given that a year at a private university costs around $80,000, would you expect your education at a private university to be worth its cost?

Either way, assume you must choose work or college on your 19th birthday, you work until the day before your 65th birthday, never get any raises (same as saying your wage always will rise with inflation), and that the interest rate is 4 percent.

Also assume all income or expenses are paid in advance on your birthday. FOr example, on your 19th birthday, you either receive 40,000 dollars for working or you must pay 80,000 dollars for college.

Then say that the average wage for a person with a masters degree is 98,000 dollars per year. If getting a masters degree takes four more years of school, what is the most you would be willing to pay each year to get a masters degree?