by Alex Li

Created on: June 29, 2008

Teenagers, for many years, have always asked or wondered if going to college is the right choice to make. Granted, your parents have always promoted this preference from the very beginning, however, by calculating the expected costs and benefits of a college education, as opposed to a job without a college education, this paper will illustrate the accurate in the long-run of whether or not going to college is the right choice to make.

The benefits of college are great. If I were to attend college, I would make a lot more money than if I did not. For me, I chose the path of an attorney as my future. An attorney Prepares and examines contracts involving leases, licenses, purchases, sales, insurance, etc. Provides legal advice to an organization, prepares resolutions and forms, and participates in major legal actions. They are responsible for foreseeing and protecting the company against legal risks. Must be a graduate of an accredited law school with 5-8 years of experience and admitted into the state bar. They are familiar with a variety of the field's concepts, practices, and procedures. Relies on extensive experience and judgment to plan and accomplish goals. They also perform a variety of tasks. May lead and direct the work of others. A wide degree of creativity and latitude is expected (Salary.com). For the next 40 years, I would make approximately $158,458 a year. At a 5% rate of discount, $158,458 a year over a 40-year period would come out to $2,725,477.60. (158,458 X 17.2 - which is the present value of $1 received at the end of each year over a 40 year period assuming a 5% rate of discount) However, my benefits to a college education do not come until after I graduate. Therefore, if I spend 3 years in undergraduate school by taking summer courses, and another 3 years in graduate school majoring in law, for a total of 6 years in college my $2,725,477.60 income after a 40-year period will be worth $2,033,206.29 in 6 years. They way I got this answer is buy taking the original income after 40 years ($2,725,477.60) and multiplying that number by 0.746 (present value of $1 in 6 years assuming a 5% rate of discount) to get $2,033,206.29.

Going to college has a large opportunity cost. By not going to college, I would have a job as a taxi driver making approximately $32,077 annually (Salary.com). This $32,077 a year will be calculated over an approximate 50-year period, because I will be working rather than going to school. Therefore, if I made $32,077 a year

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