U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35*220 versus $57,925 for someone with a bachelor's degree. If the cost of attending college is assumed to be $30,000 per year for 4 years and the forgone earnings during those years are assumed to be $35,220 per year, what rate of return does earn a bachelor’s degree represent? Use a 35-year study period.

U.S. Census Bureau statistics show that the annual earnings for persons with a high school diploma are $35*220 versus $57,925 for someone with a bachelor's degree. If the cost of attending college is assumed to be $30,000 per year for 4 years and the forgone earnings during those years are assumed to be $35,220 per year, what rate of return does earn a bachelor’s degree represent? Use a 35-year study period.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 18P: The average annual premium for automobile insurance in the United States is 1,503. The following...

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