To determine which statement is true, we need to calculate the time it will take for each person to recover their investment in college from the increased salary after graduating.
Person A:
1. Salary prior to college: [tex]$18,000
2. Years attending college: 3
3. Total cost of college: $[/tex]45,000
4. Salary upon graduating: [tex]$33,000
Steps to calculate the time to recover the investment:
1. Investment in college: $[/tex]45,000
2. Increase in salary after graduating: [tex]\( \$33,000 - \$18,000 = \$15,000 \)[/tex]
3. Time to recover the investment: [tex]\( \frac{\$45,000}{\$15,000} = 3 \)[/tex] years
Person B:
1. Salary prior to college: [tex]$27,000
2. Years attending college: 4
3. Total cost of college: $[/tex]30,000
4. Salary upon graduating: [tex]$37,000
Steps to calculate the time to recover the investment:
1. Investment in college: $[/tex]30,000
2. Increase in salary after graduating: [tex]\( \$37,000 - \$27,000 = \$10,000 \)[/tex]
3. Time to recover the investment: [tex]\( \frac{\$30,000}{\$10,000} = 3 \)[/tex] years
Since both Person A and Person B recover their investments in 3 years, the correct statement is:
c. They recover their investments in the same amount of time.
