Faith and Hope Are 30 Year Old Identical Twins

question 8

Essay

Faith and Hope are 30 year old identical twins. The only difference between Faith and Hope is their credit score. Faith has a proven record of repaying debt. Faith can borrow money at 4.5%. Hope has often missed debt payments. Hope can borrow at 8.5%.
They are considering enrolling in an evening MBA program. They plan on completing the program in two years. Assume the annual tuition is $16,000 for both years. They also anticipate that the non-monetary costs of obtaining an MBA will be $40,000 per year. The twins anticipate that after graduation in two years, their earnings will be $10,000 per year higher until they retire at age 62. Should Faith enroll in the evening MBA program? Should Hope enroll in the evening MBA program?

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Definitions:

Personal Lives

Aspects of an individual's life that are personal and private, relating to their family, home, and personal relationships.

Social Class

A division of a society based on social and economic status, affecting people's lifestyles, education, and occupational opportunities.

Wage Earners

Individuals who receive a regular wage or salary for their employment, often contrasting with those who earn income through investments or entrepreneurship.

Labor Protest

Collective action by workers, often in the form of strikes or demonstrations, to demand better pay, conditions, or rights from their employers.