Answer:
The correct answer is $42,000
Explanation:
Opportunity cost calculation.
If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books.
If she does not go to college, she will earn $18,000 working in a store and spend $8,000 on room and board
The formula is : (spend on tuition+ (spend of room and board, if she goes - spend of room and board, if she doesn´t go) + spend on books) + (the cost that she will receive, if she decides to not go).
($20,000 + ($10,000-$8,000) + $2,000) + ($18,000 if she goes, she won´t receive "opportunity cost") Â
=$20,000 + $2,000 + $2,000 + ($18,000)
=$24,000 + $18,000
=$42,000
Mandy’s cost of going to college is $42,000
