Cameron is choosing a career out of high school with no further training. The median salary for this career is $30,000. His friend Mateo is choosing a career that requires a college degree but has a median salary of $55,000. Over 20 years, what will be the difference between their incomes?

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Business

Finn Buckley

19 November, 00:07

Cameron is choosing a career out of high school with no further training. The median salary for this career is $30,000. His friend Mateo is choosing a career that requires a college degree but has a median salary of $55,000. Over 20 years, what will be the difference between their incomes?

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Elisa · Answer 1

The difference in income between Cameron and Mateo is $500,000.

Explanation:

Cameron decided to start his career directly out of the high school with no further training. He was able to make an average of $30,000 in his career.

Mateo was a best friend of Cameron. He started his career after completing his college degree. He was able to make an average $55,000 for a year.

Both of them had huge difference in their salary. After 20 years, the difference between the income of Cameron and Mateo will be $500,000.

Difference in income after 20 years = (55000-30000) * 20

= (25000) * 20

= 500,000

Therefore, the difference in income between Cameron and Mateo is $500,000.