Make your own free website on Tripod.com
Present Value of a Baruch College Degree
Decision Point: Immediately before start of Freshman Year
Expected work life =40 years. Taking 5 years for degree results in one fewer (39) working years
Present Value Tables
3% 8% 3% 8%
3 years single sum 0.91514 0.79383 0.91514 0.79383
3 years ord annuity 2.82861 2.5771 2.82861 2.5771
3 years annuity due 2.91347 2.78326 2.91347 2.78326
4 years single sum 0.88849 0.73503 0.88849 0.73503
4 years ord annuity 3.7171 3.31213 3.7171 3.31213
4 years annuity due 3.82861 3.5771 3.82861 3.5771
5 years single sum 0.86261 0.68058 0.86261 0.68058
5 years ord annuity 4.57971 3.99271 4.57971 3.99271
5 years annuity due 4.7171 4.31213 4.7171 4.31213
40 years ord annuity 23.11477 11.92461 23.11477 11.92461
39 years ord annuity 22.80822 11.87858
Time 4 years 4 years 5 years 5years
Fees  $  5,000.00  $  19,143.05  $     17,885.50  $  23,585.50  $   21,560.65
Op Cost  $15,000.00  $  55,756.50  $     49,681.95  $  68,695.65  $   59,890.65
Incre Inc  $25,000.00  $577,869.25  $   298,115.25  $570,205.50  $ 296,964.50
Pv IncInc  $513,431.05  $   219,123.65  $491,864.97  $ 202,108.10
NPV  $438,531.50  $   151,556.20  $399,583.82  $ 120,656.80
PVCost of extra year  .  $  38,947.68  $   30,899.40
Assuming student loans of $3000 per year paid back during the first working years
3% 8% 3% 8%
3 years single sum 0.91514 0.79383 0.91514 0.79383
3 years ord annuity 2.82861 2.5771 2.82861 2.5771
3 years annuity due 2.91347 2.78326 2.91347 2.78326
4 years single sum 0.88849 0.73503 0.88849 0.73503
4 years ord annuity 3.7171 3.31213 3.7171 3.31213
4 years annuity due 3.82861 3.5771 3.82861 3.5771
5 years single sum 0.86261 0.68058 0.86261 0.68058
5 years ord annuity 4.57971 3.99271 4.57971 3.99271
5 years annuity due 4.7171 4.31213 4.7171 4.31213
40 years ord annuity 23.11477 11.92461 23.11477 11.92461
39 years ord annuity 22.80822 11.87858
Time 4 years 4 years 5 years 5years
Fees  $  1,000.00  $    3,828.61  $       3,577.10  $    4,717.10  $     4,312.13
Op Cost  $15,000.00  $  55,756.50  $     49,681.95  $  68,695.65  $   59,890.65
Incre Inc  $25,000.00  $484,941.75  $   215,312.00  $455,712.75  $ 197,146.75
Payback  $21,000.00  $  78,059.10  $     69,554.73  $  96,173.91  $   83,846.91
Total  $563,000.85  $   284,866.73  $551,886.66  $ 280,993.66
Pv IncInc  $500,220.63  $   209,385.59  $476,062.95  $ 191,238.67
NPV  $440,635.52  $   156,126.54  $402,650.20  $ 127,035.89
PV cost of extra year  $  37,985.31  $   29,090.66
Present Value Tables
3% 8% 3% 8%
3 years single sum 0.91514 0.79383 0.91514 0.79383
3 years ord annuity 2.82861 2.5771 2.82861 2.5771
3 years annuity due 2.91347 2.78326 2.91347 2.78326
4 years single sum 0.88849 0.73503 0.88849 0.73503
4 years ord annuity 3.7171 3.31213 3.7171 3.31213
4 years annuity due 3.82861 3.5771 3.82861 3.5771
5 years single sum 0.86261 0.68058 0.86261 0.68058
5 years ord annuity 4.57971 3.99271 4.57971 3.99271
5 years annuity due 4.7171 4.31213 4.7171 4.31213
40 years ord annuity 23.11477 11.92461 23.11477 11.92461
39 years ord annuity 22.80822 11.87858
Time 4 years 4 years 5 years 5years
Fees  $  5,000.00  $  19,143.05  $     17,885.50  $  23,585.50  $   21,560.65
Op Cost  $15,000.00  $  55,756.50  $     49,681.95  $  68,695.65  $   59,890.65
Incre Inc  $25,000.00  $577,869.25  $   298,115.25  $570,205.50  $ 296,964.50
Pv IncInc  $513,431.05  $   219,123.65  $491,864.97  $ 202,108.10
NPV  $438,531.50  $   151,556.20  $399,583.82  $ 120,656.80
PV cost of extra year  $  38,947.68  $   30,899.40
Assuming student loans of $3000 per year paid back during the first working years
3% 8% 3% 8%
3 years single sum 0.91514 0.79383 0.91514 0.79383
3 years ord annuity 2.82861 2.5771 2.82861 2.5771
3 years annuity due 2.91347 2.78326 2.91347 2.78326
4 years single sum 0.88849 0.73503 0.88849 0.73503
4 years ord annuity 3.7171 3.31213 3.7171 3.31213
4 years annuity due 3.82861 3.5771 3.82861 3.5771
5 years single sum 0.86261 0.68058 0.86261 0.68058
5 years ord annuity 4.57971 3.99271 4.57971 3.99271
5 years annuity due 4.7171 4.31213 4.7171 4.31213
40 years ord annuity 23.11477 11.92461 23.11477 11.92461
39 years ord annuity 22.80822 11.87858
Time 4 years 4 years 5 years 5years
Fees  $  1,000.00  $    3,828.61  $       3,577.10  $    4,717.10  $     4,312.13
Op Cost  $15,000.00  $  55,756.50  $     49,681.95  $  68,695.65  $   59,890.65
Incre Inc  $25,000.00  $484,941.75  $   215,312.00  $455,712.75  $ 197,146.75
Payback  $21,000.00  $  78,059.10  $     69,554.73  $  96,173.91  $   83,846.91
Total  $563,000.85  $   284,866.73  $551,886.66  $ 280,993.66
Pv IncInc  $500,220.63  $   209,385.59  $476,062.95  $ 191,238.67
NPV  $440,635.52  $   156,126.54  $402,650.20  $ 127,035.89
PV cost of extra year  $  37,985.31  $   29,090.66