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Both Phoebe and Connor are trying to maximize their lifetime income. Each has a different plan on how to do it best.

Phoebe claims that she wants a career with no college or trade school requirements because she could save the money for retirement rather than spending it on education. She estimates her average yearly salary at $35,000 a year with no post-secondary education requirements.

Connor claims post-secondary education will help him get a career with a higher salary and more benefits he can use in retirement so the education costs will more than pay for themselves. Connor estimates his average yearly salary at $60,000 after earning a college degree.

Which statement about their claims is correct?

Respuesta :

jepessoa

Answer:

C) Connor is correct because he is likely to earn a higher salary throughout his career. By earning by only $11,000 more in salary, he could make up the difference over the life of his career. He is also likely to have more employee benefits to save for his retirement.

Explanation:

Actually the average wage of someone that only completed high school is $29,815, if you get an associate or technical degree your salary increases to $35,394, and the largest leap is for college graduates that earn $52,019.

It is significant difference between going to college or not, almost twice the salary. Even though going to college is expensive, in only a few years you will recover your investment (yes, education is an investment not a expense).

A much higher salary also allows a person to get more employee benefits, which add up and increase the difference.

Also, most of the high paying jobs that didn't require a college degree are starting to require them, e.g. manufacturing jobs at car factories are currently requiring certain skills and knowledge about computers and programming. So the difference in salaries between both types of jobs is likely to increase in the future.

chilljain33

Connor statement is correct because he will end up earning more in the long run. With his experience and qualifications he will definitely get pay raise and will not regret spending just a fraction of his monies he collects in the long run.

On the other hand, Phoebe will not make extra incomes after having not spent that extra money on getting her degree. As she will recover the amount she could spend on education only in the initial years itself.

  • The surplus salary that he receives can be invested in markets and other platforms and applied the power of compounding his salary will grow at more than quadrupled in the long run.

  • Such opportunity cost lost by Phoebe will result in dismay later that if she had spent those extra dollars on degree, she would definitely be at a  better pay.

Hence, Connor has the correct claim and will definitely earn more if his statement is followed.

To know more about secondary education, please go to the link below.

https://brainly.com/question/17544637

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