Microeconomics 14th Edition by James Gwartney ,Richard Stroup,Russell Sobel ,David Macpherson

Exercise 9

*Suppose that you are considering whether to enroll in a summer computer-training program that costs $2,500. If you take the program, you will have to give up $1,500 of earnings from your summer job. You figure that the program will increase your earnings by $500 per year for each of the next ten years. Beyond that, it is not expected to affect your earnings. If you take the program, you will have to borrow the funds at an 8 percent rate of interest. From a strictly monetary viewpoint, should you enroll in the program?