Question 8 • 26-27 RPA Financial Math - MA2007 IC
Hank gives up $14,000 in wages each year while working part-time ($28,000 − $14,000). Over two years, that opportunity cost is $28,000; adding the $5,000 education cost makes his total investment $33,000. After graduating, he earns $5,000 more per year than before ($33,000 − $28,000), so $33,000 ÷ $5,000 = 6.6 years to recover it. The best answer is 6.6 years.
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