Suppose a student is trying to decide if they should become a physician or an accountant.As an accountant,the student would earn $75,000 after four years of education.On the other hand,if the student decides to become a physician,they would need to attend school for 11 years.Each year of school costs $20,000 in both professions.As a physician,the student would earn $100,000.In both cases,the student only has 20 years to work and/or attend school.What should they do?

Question

Quizplus · Accepted Answer

The Answer is For the accountant,we need to complete the following:
4 years of school = 4*20,000 = 80,000
The accounting student can work for (20 - 4 =)16 years.So the income earned is
16*75,000 = 1,200,000
Net benefit is $1,200,000 - $80,000 = $1,120,000
For the physician,the cost of schooling is
11*20,000 = $220,000.
The physician can only work for (20 - 11 =)9 years
So the income earned is 9*100,000 = $900,000
Net benefit is $900,000 - $220,000 = $680,000

Suppose a Student Is Trying to Decide If They Should