JosephmigratedtoCanadafromGhana5yearsago.Hecurrently works in sales but is considering quitting work for two years to earn an MBA degree. His current job pays $40,000 per year (after taxes), but he could earn $55,000 per year (after taxes) if he had an MBA. Tuition is $10,000 per year, and the cost of an apartment near campus is equal to the $10,000 he is currently paying. His discount rate is 6 percent per year. He just turned 48 and plans to retire when he turns 60, whether or not he earns his MBA degree. Based on this information, should he go for an MBA degree? Explain carefully with appropriate calculations.

JosephmigratedtoCanadafromGhana5yearsago.Hecurrently works in sales but is considering quitting work for two years to earn an MBA degree. His current job pays $40,000 per year (after taxes), but he could earn $55,000 per year (after taxes) if he had an MBA. Tuition is $10,000 per year, and the cost of an apartment near campus is equal to the $10,000 he is currently paying. His discount rate is 6 percent per year. He just turned 48 and plans to retire when he turns 60, whether or not he earns his MBA degree. Based on this information, should he go for an MBA degree? Explain carefully with appropriate calculations.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 2WNG

See similar textbooks

Similar questions

you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the money to start your own business, You decided to use the money you saved to buy materials, you als decided to utilize a store you own to home your business. The store you used for your business could have been rented for 8,000 a year. You hired a clerk to help you in the store that will cost you 20,000 per year. The interest you could have earned on the 50,000 you used to buy the materials was 3,000 per year. Futhermore, you decided to manage your own business and you decided to quit your job that was paying 28,000 per year . You paid 8,000 for utility. What is yor explicit cost? Assume that your total sale for the year was 160,000. What is your implicit cost, what is the accounting profit? what is your economic profit?
Write the two computational schemes for calculating the earned interest?
Give typing answer with explanation and conclusion Ben will have earned a degree in math by the end of the year but he can earn a degree in computer science with just one more year in school by getting a second degree. His best friend just got hired by Amazon for $175,000 because he had a CS degree. The best math Ben job he could find was as a high school teacher starting at $35,000. Ben thinks his rent and living expenses would stay the?
Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Store Local Shoe Store Price of a Boots (Dollars per boots) 114 95 Juanita earns an hourly wage of $16 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $16 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Different Neighborhood in Town Rural Outlet 74 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 114 95 74 Total Cost (Dollars) Assume that Juanita considers both her opportunity costs and the price of boots when making her…
Angel started to work in 2001 with an annual salary of £20,500. She received a £1100 raise each year. what is her salary in 2012?
METHODS RESEARCH PLEASE DO IN MS WORD
Terminal Activity PROBLEM SET Study and solve the given problems below. Show your complete solutions and label your answer. Write your ANSWER on your sheet. 1. Pamela makes a monthly salary of 27,900 pesos. She also receives an additional 9.5% commission rate bonus for any sales beyond 55,000 pesos. If Pamela sold 81,500 worth of merchandise this month, what is her total gross salary? 2. John is a realtor agent. He receives 5% commission when he sells a condo unit. How much commission will he receive for selling a condo unit that cost 3,500,000 pesos? 3. Randy was paid a commission of 8.5% on his total sales. If his sales were P13,000, P15,000, P25,000, P30,000, and 33, 000 pesos consecutively, find his gross earnings.
In 2004, Safari Corporation’s total sales reached $1.2 million. By 2010, sales had climbed to $4.25 million. What is the growth in sales for Safari Corporation per year?
Please see the attached30
Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, depreciation, etc. What are Jane's total revenue? A. $600,000 B. $250,000 C. $400,000 D. $480
For Elizabeth, one of the most exciting aspects of landing a full-time job was being able to buy a different car! Even though she will be working in an urban area, she will need a reliable vehicle to travel to client locations outside the city. Elizabeth is trying to decide if she should buy a new vehicle or a slightly used vehicle, or lease a new(er) vehicle. She has had her eye on a dazzling blue SUV; it stares at her every time she drives by the lot. But she's not sure if she can justify its cost. Here are the costs and benefits she has gathered for each of these options: Monthly payment Time frame Warranty Full coverage Isurance Buy New $550 6 years Excellent for 100,000 miles $205 per month $350 Buy Used 4 years Excellent for next 40,000 miles only $155 per month Lease Midnight- Blue SUV $310 plus $2 per mile if over 10,000 miles per year 2 years Excellent for length of lease $185 per month
Please help me create a research question on economic for someone pursuing economic to research.