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FactorInputNotes
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MBA Type (FT or PT)PT
FT has opportunity cost
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Cost of Admittance$1,000
GMAT, gifts, travel for interviews, etc
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Current Salary$115,000
Assume for PT that salary is maintained throughout
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Total Tuition$115,000
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Annual program travel costs$1,000
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Percent of Tuition funded by Debt75%
Assume that equal debt will be taken for first two years
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Debt Interest7%
Assume same interest rate for all student debt
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Post-MBA Salary$150,000
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Percent of Post-MBA Salary to Pay Debt20%
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YearDebt InterestStudent DebtNetNotes
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10-$43,125-$45,125Interest partially accrues in first year, but shown zero here for simplicity
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2-$2,803-$89,053-$92,053First year debt + interest + second year debt
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3-$5,788-$64,842-$92,842Remaining debt + interest + post MBA salary improvement
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4-$4,215-$39,056-$92,056
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5-$2,539-$11,595-$89,595
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6-$7540-$55,349
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700-$20,349
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800$14,651
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900$49,651
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1000$84,651
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1100$119,651
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1200$154,651
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1300$189,651
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1400$224,651
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1500$259,651
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1600$294,651
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1700$329,651
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1800$364,651
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1900$399,651
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2000$434,651
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2100$469,651
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2200$504,651
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2300$539,651
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2400$574,651
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2500$609,651
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2600$644,651
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2700$679,651
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2800$714,651
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2900$749,651
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3000$784,651
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