Answers 26-27 RPA Financial Math - MA2007 IC Career PlanningQuestion 6

6

QuizMultiple Choice

Career Planning

Question 6 • 26-27 RPA Financial Math - MA2007 IC

Alistar has an annual income of $25,000. He decides to take classes on line and at night so that he can continue to work. After 3 years he gets his degree and immediately starts earning $32,000 per year. If it takes Alistar 6 years to recover his investment for his education, how much did it cost him?

Answer

A

$21,000

B

$42,000

C

$63,000

D

$150,000

Explanation

After earning the degree, Alistar makes $32,000 − $25,000 = $7,000 more per year. If it takes 6 years of that extra income to recover his education investment, the cost was 6 × $7,000 = $42,000. The correct choice is $42,000.

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