Carcass wrote:
If an associate-degree holder earning 20 percent less than the median for that degree went on to get a bachelor’s degree and earn 25 percent more than the median for that degree, which of the following is closest to the change in the degree holder’s annual income?
$28,200
$30,500
$31,500
$34,300
$49,500
Median weekly Salary with Associate-degree = $757
Associate-degree holder actual earning =
(0.80)($757)=$605.6Median weekly Salary with Bachelor-degree = $1012
Bachelor-degree holder actual earning =
(1.25)($1012)=$1265Change in Median weekly salary =
$1265−$605.6=$659.4Don't forget to multiply by 52, to get the Median Annual Salary;
i.e.
(52)($659.4)=$34288.8Approx. $34300Hence, option D