Let's break down the problem step-by-step to find out how long it will take Aaron to recover his investment in college education.
1. Identify the given information:
- Median annual salary for a high school graduate: [tex]$30,000.
- Median annual salary for an associate's degree holder: $[/tex]40,000.
- Total cost of college: [tex]$30,000.
- Aaron completes his college degree in 2 years while continuing to work.
2. Calculate the annual increase in salary:
After earning an associate's degree, Aaron's salary increases from $[/tex]30,000 to [tex]$40,000.
\[
\text{Annual Increase in Salary} = \$[/tex]40,000 - \[tex]$30,000 = \$[/tex]10,000
\]
3. Calculate the number of years required to recover the college cost:
The total cost of college is [tex]$30,000. We need to determine how many years it will take for the increased earnings to cover this cost.
\[
\text{Years to Recover Investment} = \frac{\$[/tex]30,000}{\$10,000 \text{ per year}} = 3 \text{ years}
\]
Therefore, it will take Aaron 3 years to recover his investment in college education through the increased earnings resulting from his associate's degree.
