4. Tanya Tomkins carns $58,000 annually, with raises of 2.5 percent each year. She is 30...

 

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4. Tanya Tomkins carns $58,000 annually, with raises of 2.5 percent each year. She is 30 years old and plans to retire when she is 65. She also hopes to receive a promotion in 5 years that will raise her salary by 15 perecent at the time of the promotion. Tanya is considering going to school next year to pursue a graduate degree. She will not earn anything over the two years it takes to carn the degree and in fact will have to pay tuition of $15,000 a year. When she graduates she hopes to see an increase in her salary to $70000 a year and to receive raises of 3 percent annually. If Tanya believes 7 percent is a reasonable rate of return, should she go to school to pursue the graduate degree? Explain fully with all supporting calculations clearly presented in Excel and using Excel functions whenever possible. 4. Tanya Tomkins carns $58,000 annually, with raises of 2.5 percent each year. She is 30 years old and plans to retire when she is 65. She also hopes to receive a promotion in 5 years that will raise her salary by 15 perecent at the time of the promotion. Tanya is considering going to school next year to pursue a graduate degree. She will not earn anything over the two years it takes to carn the degree and in fact will have to pay tuition of $15,000 a year. When she graduates she hopes to see an increase in her salary to $70000 a year and to receive raises of 3 percent annually. If Tanya believes 7 percent is a reasonable rate of return, should she go to school to pursue the graduate degree? Explain fully with all supporting calculations clearly presented in Excel and using Excel functions whenever possible.

Answer rating: 100% (QA)

Answer To determine whether Tanya should pursue the graduate degree we can calculate the present val... View the full answer