Question 2: Wharton or Rutgers MBA? See appendix articled
Given: You are 23 years old, you consider to choose a two year MBA program, then you plan to work for 40 years and then retire. You will borrow at Rate Z (specified below) the whole cost of the program at the MBA graduation date (at age 25) . You will make $125K per annum in all years of your working life if you graduate from Wharton MBA or $X per annum if you graduate from Rutgers MBA.
Wharton has a total program cost of $140K; Rutgers has an in-state total program cost of $50K and an out-of-state total program cost of $85K
Q 2.1 In the table below calculate which program is financially better for you if you live in NJ;
X
Borrowing Rate Z
Borrowing Rate Z
Borrowing Rate Z
5%
10%
15%
115
100
90
Q 2.2 Now which program is financially better if you live outside of NJ
X
Borrowing Rate Z
Borrowing Rate Z
Borrowing Rate Z
5%
10%
15%
115
100
90