The internal rate if return on investment in education?

Chris G · #1 (**permalink**) 03-14-2008, 08:07 PM

I understand what t is but i dont think i could define it any clues?
a) discount rate that equates the net present value at zero
b)intrest rate on educational loans (I dont think its this one)
c)ratio of earnings potential with the education-to-earnings potential without the education
d)ratio of after-tax earnings to before-tax earnings

THANKS FOR THE HELP =]

Jon B · #2 (**permalink**) 03-14-2008, 08:08 PM

The answer is C.

Your rate of return on investment in education is any income earned over what you would have earned if you did not attend school.

tehabwa · #3 (**permalink**) 03-14-2008, 08:09 PM

Well, think about it, if you invest in education, which of the things you list would have to do with the RETURN on that INVESTMENT?

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