What rate of return does earning bachelors degree represent

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U.S. Cenus Bureau statistics show that the annual earnings for persons with a high school diploma are $35,220 versus $57,925 for someone with a bachleor's degree. If the cost of attending college is asumed 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 earning a bachelor's degree represent? Use a 35 year study period. (Hint: The investment in years 1 through 4 is the cost of colelge plus the foregone earnings, and the income in years 5 through 35 is the difference in income between a high school diplima and a bachelor's degree.

Reference no: EM13277764

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