You Have Recently Graduated from High School and Are Debating

question 23

Essay

You have recently graduated from high school and are debating whether to attend college or get a job. Assume that you can spend a certain amount today for tuition and receive your college degree in only one year. When you graduate, you will receive a job that pays you $100,000 immediately and $100,000 the following year. If you begin working immediately, you can earn $35,000 today and each of the next two years. If the interest rate is 10%, solve for the amount of tuition that would make you indifferent between going to college and working immediately.

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Definitions:

Audacious Project

A bold, ambitious initiative aimed at tackling significant challenges or achieving groundbreaking results.

Social Entrepreneurs

Individuals who pursue innovative solutions to social problems with the aim to create social value rather than just profit.

Philanthropists

Individuals or organizations that actively seek to promote the welfare of others, typically through generous donations of money to various causes.

TEA

Total Entrepreneurial Activity; a metric used to measure the percentage of the adult working-age population who are either a nascent entrepreneur or owner-manager of a new business.