James has a job with a current salary of \( \$ 42,000 \). He wants to earn a college degree that will take him 2 years to complete and it will cost \( \$ 28,000 \) per year. He will go to school full time and will not be able to work. Upon graduation, James' new salary will be \( \$ 56,000 \) per year. How many years will it take James to recover his investment? a. 1.3 years b. 2.5 years c. 10 years d. 20 years.

To determine how long it takes for James to recover his investment in a college degree, we need to compare his earnings if he did not go to college (continuing his current salary) with his earnings after graduation. Step 1. Calculate the total cost of the investment when going to school. • In 2 years, while James is in school, he incurs two types of costs:  - Tuition: 2 years × $28,000 per year = $56,000  - Lost salary: 2 years × $42,000 per year = $84,000 • Total cost (investment) = Tuition + Lost Salary = $56,000 + $84,000 = $140,000 Step 2. Compute the increase in his annual salary after graduation. • After graduation, his new salary = $56,000 per year. • Without the degree, he would have continued earning $42,000 per year. • Annual increase = $56,000 − $42,000 = $14,000 Step 3. Determine the number of years required to recover the $140,000 investment using the annual increase. • Number of years = Total investment ÷ Annual increase = $140,000 ÷ $14,000 = 10 years Thus, it will take James 10 years to recover his investment. The correct answer is 10 years.