If the median income for someone with an associate's degree is $9,100 higher annually than for someone with a high school degree,and the cost of schooling for the two years is $10,000 each year,at what point does the investment into the education break even?
A)1.9 years
B)2 years
C)2.2 years
D)3.1 years

Question

Quizplus · Accepted Answer

To find the break-even point, we need to calculate how many years it will take for the increased income from having an associate's degree to cover the cost of the education:

Let X be the number of years it takes for the investment to break even.
The additional income from having an associate's degree is $9,100 annually.
So in X years, the additional income from having the degree will be equal to the cost of the education:

$9,100 X = $10,000 + $10,000 = $20,000

Solving for X, we get:

X = $20,000 / $9,100
X ≈ 2.2 years

Therefore, it would take approximately 2.2 years for the investment into the education to break even.

If the Median Income for Someone with an Associate's Degree