Offered five year research assistant ship to earn your PhD

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Reference no: EM131980566

One of your professors has made you an offer you cant refuse. You are offered a five year research assistant ship to earn your PhD after you recieve your BS degree. The assistantship will pay you $2,725 per month (a stripend) starting in june after your BS graduation. If you enter industry right now, your starting annual salary will be $73,000 and you can expect annual salary increases of 3.30%. After 3 years, your thesis advisor, who has a small hi-tech company in the area of your theses research, offers you the opportunity to work 60 hours a month in the company at $40 per hour. This commitement in time will extend your PhD research by one year, to a total of 6 years. You accept the offer which allows you to keep your assistmanship stripend, and to increase your monthly income. If you consider the loss of earnings during the 6 year PhD degree program and investment, how much more should you recieve in annual salary if you want to recover your investment in the 10 years following the reciept of your PhD degree? Use 7% compunded monthly for your calculations.

Reference no: EM131980566

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