Amanda is entering her last year in college. Her tuition is $15,000 for the year, and she paid for it with her savings which were earning 5% interest. If she graduates with a degree, she will find a job paying $50,000 a year. However, right now, Amanda has a full-time job offer as a salesperson for Verizon, which pays $30,000 a year.
a. What are the benefits and costs of staying in college for the last year?
b. Should Amanda quit college to start working at Verizon? Base your answer on your answer in part (a).