The additional educational years or the time value of, Finance Basics

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The additional educational years or the time value of

Chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted to medical school is about 5 percent. If you are accepted to medical school, then your starting salary when you graduate will be $258,127 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn $45,536 per year. Without considering the additional educational years or the time value of money.

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