Josie has an undergraduate degree in economics and has been working as a utility rate analyst at the local electricity utility.If she continues on her present career path,the present value of her lifetime earnings is $250,000.If she takes two years off and gets an MS degree in economics,the present value of her lifetime earnings is $275,000.The annual cost of an MS degree in economics is $15,000 and the interest rate is 8%.
The discounted (present value) cost of Josie's graduate degree in economics is _______.
A) $30,000
B) more than $30,000
C) more than $15,000 but less than $30,000
D) $15,000
Correct Answer:
Verified
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