Question

COULD YOU PLEASE DO IT WITH CLEAR STEPS AND NUMBERS, THANKS IN ADVANCE

Josh is graduating at the end of the academic year with a BS degree in engineering. He already has an offer with a good company for $58,000. He learned that those who continue along a technical path in the company typically receive increases of 6 percent per year. Now that Josh smells the diploma and the money, he is ready to get out and make a mark in the company. Josh’s family, however, have encouraged him to consider completing a MS degree, thereby deferring employment for 2 years. Josh learned in that same company, those with an MS degree who remain on a technical path earn increases of 7.2 percent. With a graduate assistantship, Josh will have to pay only $8,000 per year out of his own pocket. He will be 23 when he graduates with the BS, 25 when he completes an MS degree, and 65 when he retires. All salaries and cost are considered to occur at the end of the year. Assume Josh’s TVOM is 7 percent, what must his minimum starting salary be to justify staying for the MS degree?

Answer 1