« on: April 18, 2006, 06:20:41 PM »
so if you don't go to law school you're going to take out 141k in loans and put it in a savings account?
he is comparing two investments.
the way you do this is by discounting the cost of each investment to a lump sum today, and compare the returns. yes, he might NOT put the money into a savings account, he might spend it, but that means that the utility of spending the money is >= the what it could potentially earn in a savings account, discounted back to today.
for more information, learn about the definition of "net present value" of a project.
i dont need an economics class, i just don't think it's the best way to look at the "cost" of law school. kevdog's post above this is the correct way in my opinion.