Upon Graduating from College This Year You Expect to Earn

question 47

Multiple Choice

Upon graduating from college this year you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5%. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year?

• A) -$2,462
• B) $8,333
• C) $8,750
• D) $9,524
• E) $10,000 (35,000/1.05)-25,000

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