Question

Upon graduating from college this year, you expect to earn $50,000 per year. If you get your MBA, in one year you can expect to start at $70,000 per year. Over the year, inflation is expected to be 5 percent. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year?

Answer 1

Answer:

$16,666

Explanation:

Calculation to determine how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year

Additional money=($70,000/(1+.05)-$50,000

Additional money=($70,000/1.05)-$50,000

Additional money=$66,666-$50,000

Additional money=$16,666

Therefore how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year is $16,666