Net present value of studying? Suppose I attend college with 10k tuition fee per year meanwhile I have a part time job for 5k annually. After 3 years, I get a job for 45 years and earn 40k each year. What is my net present value in term of interate rate x?

I did try to form a formula like this, is it correct?
I did try to form a formula like this, is it correct?


No. You need to include the NPV of all years. Right now you are only considering two of those years (and it is not clear which year you refer to in the 2nd term).

Also, it is unclear from the problem whether tuition is paid in the beginning of each year or at the end thereof.

The discounting factor in the 2nd term is wrong. The discounting factor for a cash flow at the end of year $n$ is $$1/(1+x)^n$$.