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 |
|
|
|
|
|
|
|
|