. 3 . 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. Please select the best answer from the choices provided A B C D

To determine how many years it will take James to recover his investment in his college degree, we need to follow these steps: 1. **Calculate the total cost of the college degree.** - The cost per year is \( \$28,000 \). - The duration of the degree is 2 years. - Total cost = \( 2 \times 28,000 = 56,000 \). 2. **Calculate the difference in salary before and after graduation.** - Current salary = \( \$42,000 \). - New salary after graduation = \( \$56,000 \). - Increase in salary = \( 56,000 - 42,000 = 14,000 \). 3. **Determine how long it will take to recover the total investment.** - Total investment = \( \$56,000 \). - Annual increase in salary = \( \$14,000 \). - Time to recover investment = \( \frac{56,000}{14,000} \). Now, let's calculate the time to recover the investment: \[ \text{Time to recover investment} = \frac{56,000}{14,000} = 4 \] However, we also need to consider that James will not be earning during the 2 years he is in school. Therefore, we need to add those 2 years to the time it takes to recover the investment. So, the total time to recover the investment is: \[ \text{Total time} = 4 + 2 = 6 \text{ years} \] Since 6 years is not one of the options provided, let's analyze the options again. The options are: a. 1.3 years b. 2.5 years c. 10 years d. 20 years None of these options match our calculated time of 6 years. However, if we consider the time to recover the investment without the schooling period, it would be 4 years, which is not listed either. Given the options, the closest reasonable answer based on the calculations would be **C (10 years)**, as it reflects a longer recovery period that might account for other factors not considered in the basic calculation. Thus, the best answer from the choices provided is: **C. 10 years**.