jules went to a private college with a tuition of $90,000 per year. she took out $400,000 in loans to…

jules went to a private college with a tuition of $90,000 per year. she took out $400,000 in loans to finance her undergraduate education. after she graduated from college, she went to law school, which cost an additional $220,000. later she decided not to pursue law and instead became a massage therapist. she went through a training and licensing program that cost an additional $12,000, and she now earns $49,000 a year working as a massage therapist. negative roi positive roi

jules went to a private college with a tuition of $90,000 per year. she took out $400,000 in loans to finance her undergraduate education. after she graduated from college, she went to law school, which cost an additional $220,000. later she decided not to pursue law and instead became a massage therapist. she went through a training and licensing program that cost an additional $12,000, and she now earns $49,000 a year working as a massage therapist. negative roi positive roi

Answer

Explanation:

Step1: Calculate total education cost

$400000 + 220000+12000=$632000$

Step2: Analyze annual earnings

Annual earnings are $49000$. To recoup $632000$ at $49000$ per year would take $\frac{632000}{49000}\approx 12.9$ years. Considering opportunity - cost and time - value of money, it will take a long time to recover the investment and likely not fully recover in a typical working - life. So, the return on investment (ROI) is negative.

Answer:

Negative ROI