Question

2. You are a savvy medical assistant student who is eager to finish his/her studies at SAC. You also know want your keep options about other careers in the medical field and have done some research that shows nurses have salaries in excess of $80,000 per year and doctors have salaries in excess of $250,000 per year. With this information in hand, you are making some financial plans to determine how much debt you would have at graduation for each of the three professions. ESTIMATE the future value of your student loan at graduation given the following: o Medical Assistant-2 year program (term), with $15,000 in student debt at a 4% interest rate. Nurse-4 year program (term), with $35,000 in student debt at a 4% interest rate Doctor-8 year program (term), with $175,000 in student debt at 4% interest rate Which option would you choose and why? o o

Answer 1

FUTURE VALUE CALCULATION OF THREE LOANS
MEDICAL ASSISTANT	FV(4%/12,2*12,0,-15000)	$16,247.14
NURSE	FV(4%/12,4*12,0,-35000)	$41,061.95
DOCTOR	FV(4%/12,8*12,0,-175000)	$240,869.15

I will prefer to take 8 year loan to pursue course relating to doctor as doctor salary is $2.5 lakhs more then other professions and the FV of that loan is less then 2.5 lakh which the student once become doctor will repay with his first salary and future earning potential will rise for him.