Question

If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $12 per hour, and your room and board is $4,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Answer 1

opportunity cost is computed as the difference between the present worth and the cost. present worth is the product of $12 and 10 hours * 15 weeks while the cost includes the tuition cost, books cost and the board cost. The cost has a total of $2,000 + $400 + $4000 equal to $6400. The difference is equal to $4600