At age 40,Joe is considering quitting his job and going back for a college degree.He needs two more years full-time.Tuition is $10,000 per year.He earns $30,000 per year.A college degree would raise his annual income by $10,000 per year.He will retire at age 70.Which of the following makes it more likely that Joe will decide to go back to college full-time?
A) The rate of interest increases.
B) The rate of interest decreases.
C) The government enacts mandatory retirement at age 60.
D) Tuition increases.

Question

Quizplus · Accepted Answer

A lower interest rate decreases the opportunity cost of going back to school, making it more financially feasible for Joe to invest in his education.

At Age 40,Joe Is Considering Quitting His Job and Going