Bradley Jones, age 23, is considering joining the prestigious MSF Program at IIT's Stuart School of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bradley Jones, age 23, is considering joining the prestigious MSF Program at IIT's Stuart School of Business in fall of 2023. He is trying to figure out if the program is worth the investment - -- at least in financial terms. He figures that he will have to pay $45,000 per year tuition in August 2023 and then again in August 2024. He is certain that when he graduates in May 2025 he will be able to command an increase in his salary -- either from his current employer or from another employer -- as a result of the MSF Program. Assume that Bradley requires a rate of return on his investment of 9.5% per annum and that his first salary increase resulting from his degree will take place in August 2025. Also assume that Bradley expects a 3.5% annual increase in his salary throughout his career and that he will receive forty annual paychecks after graduation, the first of which will be in August 2025. By how much must Bradley's salary increase in August 2025 to justify his total outlays of $90,000 for tuition? Bradley Jones, age 23, is considering joining the prestigious MSF Program at IIT's Stuart School of Business in fall of 2023. He is trying to figure out if the program is worth the investment - -- at least in financial terms. He figures that he will have to pay $45,000 per year tuition in August 2023 and then again in August 2024. He is certain that when he graduates in May 2025 he will be able to command an increase in his salary -- either from his current employer or from another employer -- as a result of the MSF Program. Assume that Bradley requires a rate of return on his investment of 9.5% per annum and that his first salary increase resulting from his degree will take place in August 2025. Also assume that Bradley expects a 3.5% annual increase in his salary throughout his career and that he will receive forty annual paychecks after graduation, the first of which will be in August 2025. By how much must Bradley's salary increase in August 2025 to justify his total outlays of $90,000 for tuition?
Expert Answer:
Answer rating: 100% (QA)
Step 12 By August of 2025 Bradley will need an increase of at least 873473 in order for his total tuition expenses of 90000 The deadline for complete ... View the full answer
Related Book For
Fundamentals of Investments
ISBN: 978-0132926171
3rd edition
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
Posted Date:
Students also viewed these economics questions
-
What will be the effect on total portfolio expected return and risk if you borrow money at the riskfree rate and invest in the optimal risky portfolio?
-
If fixed costs increase, what would be the impact on the (a) Contribution margin ? (b) Income from operations?
-
If fixed costs increase, what would be the impact on the (a) Contribution margin ? (b) Income from operations? Discuss.
-
A card is drawn at random from a deck of 52 playing cards. Find the probability that it is a club or a king.
-
You are an expatriate manager at a manufacturing facility in Asia on your first assignment abroad. You are aware of increasing concern among your employees (mostly young women) about wages that...
-
A somewhat simplified flow diagram for a nuclear power plant shown in Fig. 1.4 is given in Fig. P6.42. Mass flow rates and the various states in the cycle are shown in the accompanying table. The...
-
Repeat Example 7.3 using \(10 \mathrm{~kg} / \mathrm{h}\) of solvent in each stage. Data From Example 7.3:- The feed of Example 7.2 is extracted three times with pure chloroform at 298 K, using 8...
-
Copa Corporations accountant left for vacation before completing the monthly cost variance report. The corporations president has asked you to complete the report. The following data are available...
-
Find all the complex numbers z such that z += 0. Is the set open or closed? {zC: z*+i=0}
-
The shaft is made of A992 steel. It has a diameter of 1 in. and is supported by bearings at A and D, which allow free rotation. Determine the angle of twist of B with respect to D. 60 lb-ft 2 ft /60...
-
Two charges q1 = 6 C, q2 = -23 C, are L = 17 cm apart. A third charge is to be placed on the line between the two charges. How far from q1 should the third charge be placed so that the net electric...
-
Find the net charge of a system consisting of 6.21106 electrons and 7.8710 protons. Express your answer in coulombs. View Available Hint(s) Qnet = Submit Part B t O ? C Find the net charge of a...
-
Assume market demand characterized by MPB(Q)=168-2Q (MPB=marginal private benefit, and is the same as the price in the demand function), and market supply characterized by MPC(Q)=12+2Q (MPC is the...
-
Bryan paid $96.00 for an item at the store that was 20% off the original price. What was the original price? The original price for the item was $ Round your answer to the nearest cent.
-
Express the total-spin states |1, 1) and |1, 1) (with respect to the z-axis, as usual) of a system made of two spin- particles in terms of the product states | +x, +x), |+x, x), |x, +x), and | x,...
-
What are the implications of social learning theory on the development of organizational culture and norms? Explain
-
Describe how you would communicate your top three strengths achiever, learner, and Self-Assurance (from your CliftonStrengths assessment) during an interview for a position in your dream job. What is...
-
Eleni Cabinet Company sold 2,200 cabinets during 2011 at $160 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $56. Purchases made during the year were as follows: February . 225...
-
Given the following spot rates for various periods of time from today, calculate forward rates from years one to two, two to three, and three to four. Years from Today Spot Rate...
-
Using aggregate demand-to-buy and supply-to-sell schedules, explain and illustrate the effect of the following events on the equilibrium price and quantity traded of Fairchild Corporation's stock. a....
-
Why might a corporation wish to issue more than one class of common stock?
-
Show that the group \(D_{3}\) has two 1D irreps in addition to the 2D irrep found in Problem 5.6 , and construct the character table. Derive the two-dimensional matrix representation Data from...
-
Show that the groups \(C_{3 v}\) and \(D_{3}\) have equivalent characters, but the basis functions corresponding to their irreps are different.
-
The matrix representation of \(\mathrm{C}_{3 \mathrm{v}}\) given in Eq. (5.14) was constructed with respect to the particular coordinate system defined by the unit vectors \(\boldsymbol{e}_{1}\) and...
Study smarter with the SolutionInn App