What is the masters degree worth to sally


Problem:

The company where Sally works pays higher base salaries (currently worth an additional $11,000/year) to graduates with Masters Degrees compared to a Bachelor's Degree.

Required:

Question: Over a 40 year career, what is the Masters Degree worth to Sally, assuming a 4% real time value of money?

Note: Be sure to show how you arrived at your answer.

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