RWC Chapters 4 and 5

True of False: If students want to be successful in today's society, the only option they have after high school is to go on to college

• True

• False

Devin is considering becoming a teacher. In order to understand the financial implications of this career choice she calculates the ROI of getting a teaching degree compared to her potential earnings. After doing the math, Devin gets a negative ROI. Which of the following is the best explanation for what that means?

• It means that Devin will never recoup the money she spent on the degree.

• It means that in order to make it financially worth it, she must work in that career for more than one year before it starts paying off.

• It means that the return of her investment is going to take longer than if she chose a different career field.

• Both A & B are correct.

• Both B & C are correct.

When calculation ROI, you must first find the benefit. Which of the following best describes the term "benefit" in this situation?

• The benefit refers to how much total money you make on a deal.

• The benefit refers to how much you make after you pay back your initial investment.

• The benefit refers to how much money you put into an investment to begin with.

• The benefit is the same as the revenue.

• The benefit is always going to be more than the cost.

Miles has started up a cross-country consulting business called "Miles with Miles." He used his savings from a part-time job to start his business and borrowed money from his parents. In total, Miles has invested $7,000 into his business. During his first year, his post-expenses profits totaled $9,400. In order to calculate the ROI of his business, Miles will need to first calculate the benefit. What is his benefit for the first year in business?

• 34%

• 134%

• $2,400

• $7,000

• $9,400

Nico is looking for investors to fund his debut album entitled "Personal Finance Class is the Best Thing Evuh!!" Jacob sees a lot a potential album sales and so hie invests $25,000. He was right! After all the sales were tallied and the expenses taken care of, Nico paid Jacob $60,000. Wjat was Jacob's ROI?

• 58%

• 140%

• 42%

• 240%

• 71%

Lane is considering a career as a public relations specialist where he would make about $38,000 a year. Looking at it though, he realizes that it will cost him about $52,000 to get the degree he needs for that career. If Lane decides to move forward with this career choice, what will his ROI be after the first year in his career?

• -27%

• 27%

• -73%

• 73%

• 136%

Brian is considering a career as a pharmacist where he would make about $79,000 a year. Looking at it though, he realizes that it will cost him about $92,000 to gt the degree he needs for that career. If Brian decides to move forward with this career choice, what will his ROI be if he considers the first two years of his career in his calculations?

• -14%

• 72%

• 86%

• 116%

• 172%

True or False: based on the average lifetime earnings potential, going to college will earn you more than going to work righ after high school but it might take a while to catch up.

• True

• False

Which of the following is not considered a type of financial aid available for college?

• Pell Grant

• Subsidized loans

• Your job reimburses your tuition costs

• Personal savings

Amber is starting college this fall. Which of the following would not be taken into consideration when determining how much Pell Grant money she's eligible for?

• The size of her family

• The amount of tuition at the college

• The number of college credits they are enrolled in

• Her parents' income

• All of the above would be considered.