Question: Joseph is in a dilemma. He has been offered a job which would pay him ₹ 80,000 per month for first three years and ₹ 1,20,000 per month for the next three years, and ₹ 1,50,000 per month for the remaining four years. He has also been offered an MBA at a prestigious place and he is considering whether to accept the job or go for the MBA. The first year tuition fee for the MBA program is ₹ 16,00,000 and the second year tuition fee for the MBA program is ₹ 20,00,000. After MBA, he'll get a salary of ₹ 2,00,000 per month for the first four years and then ₹ 2,50,000 per month for the remaining four years. What will be the approximate percentage gain for Joseph in opting for the MBA instead of the job in the 10 years horizon considering no discounting of money?
Total amount earned through job = [(80000 × 3) + (120000 × 3) + (150000 × 4)] × 12
Net amount earned through MBA = salary earned in 8 years (after MBA) − MBA fees paid for 2 years
Hence, option (b).