What will be the total cost to graduate from the University of (blank) with a 12

Question

What will be the total cost to graduate from the University of (blank) with a 120 credit hour bachelor degree?

Items to include:

Use the base tuition for the imaginary university being $7,890 per year. Be sure to add in the College of Business fee of $12 per credit hour. Use 15 credit hours per semester. Students drop classes, thereby delaying graduation.

Add in the cost of living for housing; more than 1 person per room ($1,738 per semester)

Add in cost of a meal plan ($1,320 per semester)

Use 11 semesters (national avg.) to complete bachelor degree

Assume no inflation

Add money for books, supplies, auto, and leisure activities ($1000/semester)

Add in the wages lost during the 5.5 years; use 50 months @ $2500 per month

If you plan to work while attending school (say you make $8,500 per year), credit your estimated wages earned against your expenses listed above

Assuming you can get a job paying $2500 a month, without going to college, versus getting a job that requires a bachelor degree @ $3500 per month, how long will it take for you to break even (pay for your college degree)?

Is an undergraduate degree worth the cost? Give your opinion and why.

Explanation / Answer

Lets first calculate all the expenses incurred to gain bachelors degree.

Tution fees for 5.5 years= 7890*5.5= $43395

College of Business fee of $12 per credit hour and there are 15 credit hours per semester

College of Business fee Cost for 11 semester= 12*15*11=$1980

The cost of living for housing= 1738*11= $19118

cost of a meal plan ($1,320 per semester)= 1320*11= $14520

books, supplies, auto, and leisure activities ($1000/semester)= 1000*11= $11000

The wages lost during the 5.5 years; use 50 months @ $2500 per month = 50*2500= $125000

Wages earned= 8500*5.5= $46750

Total Cost by adding all the above= Tution fees for 5.5 years+College of Business fee Cost for 11 semester+The cost of living for housing+ Cost of meal plan+books, supplies, auto, and leisure activities+The wages lost during the 5.5 years; use 50 months -Wages earned

=43395+1980+19118+14520+11000+125000-46750

Total Cost by adding all the above=$168263

Without going college time required for breakeven= 168263/2500=67.30 Months=5.61 Years

With a job that requires bachelors degree time required for breakeven= 168263/3500= 48.07 Months= 4 Years

Undergraduate degree is worth the cost as it is providing instant $1000/month difference in salary. If we consider year on year growth in salary for a lifetime this will make a considerable difference to ones income. Thus undergrad degree is worth the cost. Here we are not considering time value of cost of undergrad degree which will make taking up degree more lucrative.

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