The high school graduate should decide whether cost of investing in the college education will be worth it in long run versus jumping immediately into job market. Assume you have evaluated cost of the 4-yr college education, including tuition and living expenses, at $130,000. You have also situated following statistics of annual earnings.
In 2000, median annual earnings of a high scholl graduate with no college attendance was $26,364. Annual median earnings of two groups have risen at rates of roughly $994 and $534 per year, respectively.
Suppose average 18 year old high school graduate will work until age 65, earning median amount through those years.
1. How much will the person earning median amount earn until retirement if he or she joins work force instantly after high school graduation without going to college?