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You have recently graduated from high school and are debating whether you should attend college or immediately enter the workforce. Assume that you can spend
You have recently graduated from high school and are debating whether you should attend college or immediately enter the workforce. Assume that you can spend $50,000 today for tuition and receive your college degree in only one year. When you graduate you will receive a job that pays you $100,000 immediately and $100,000 the following year. If you begin working immediately, you can earn $35,000 today and each of the next two years. If the interest rate is 10%, should you go to college?
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