Question

Your brother suggested that you do some research and calculate the total cost of getting a degree. You know that you would have to quit your job to study, and your net pay is about $2,000 a month now. You plan to live at your parents’ home, so you won’t have to pay for room and board. After doing some research, you identified these direct costs of college for one year:

Tuition = $13,000
Books and supplies = $900
Transportation = $400

Estimate the total cost (including opportunity cost) for one year of studying for your degree.
Question 3 options:

$24,000


$38,300


$16,300


$14,300

Answer 1

$38,300

Explanation: Direct costs = $13,000 + $900 + $400 = $14,300. Opportunity cost (lost wages) = $2,000 × 12 = $24,000. Total = $14,300 + $24,000 = $38,300.