Agricultural Economics
Series 26
August 1976
A COMPUTER PROGRAM FOR DETERMINING
THE EXPECTED RATE OF RETURN ON THE
INVESTMENT IN A COLLEGE EDUCATION
.EE4
A3
No .2
6
Agricultural Experiment Station
of Auburn University
R.D. Rouse, Director Auburn, Alabama
AUBURN 
UNIVERSITY
LIB3RARIES
.E4
A3
no. 26
3 106 10 
19 862
A COMPUTER PROGRAM FOR DETERMNING
THE EXPECTED RATE OF RETURN ON THE
INVESTMENT IN A COLLEGE EDUCATION
William E. Hardy, Jr. and John L. Adrian, Jri
In recent years, economists, educators, and others concerned with
the education process have expressed interest in the private and.social
returns generated by investment in a college education. Economists
have devoted study to these returns and to the related concept of
human capital, the productive asset resulting from educating and train-
ing the individual [4., p. 571]. Economic analyses have also been
directed toward study of the costs of the educational process and
determination of how these expenses should be shared by the individual
and society C l, 53.
This bulletin presents several basic concepts that should be
considered in an education investment analysis. A discussion of the
basic returns and costs associated with higher education and a pro-
cedure for determining the rate of return. on- the investment are included,
Also, detailed instructions for utilization of a computer program
designed to aid in determining the expected rate of return for an
individual student's investment in college-are presented.
j t
e
2
Rate of Return Analysis
A basic component of all studies related to an investment,
whether in human capital or "hard" capital such as machines, build-
ings, or equipment, is that of the rate ofreturn.. When a business
manager considers an investment, costs and returns for that partic-
ular activity are generally assembled and compared to determine the
relative profitability of the investment. A. potential student should
initiate a similar analysis when considering an investment in higher
education.
Educational Returns
In determining the rate of return on educational investment,
an individual must estimate all returns expected to be realized.as
a result of the decision to secure higher education. Returns are
grouped into two distinct categories, investment returns and
consumption returns. rnves.ment retur as refer to monetary rewards or
increased earnings that a person might expect through increased skills
and/or abilities to produce those goods and services that are
valued highly by society. Nonpecuniary or consumption returns,
which re ,perhaps the most important buit most difficult to measure,
stem from the imediate utility or satisfaction that a person re-
ceives during the time of his schoolig and the long-run increased
satisfaction that accru Bduingis lifetime because of the educa-
.3
must bear for a college education are tuition, books and supplies,
and foregone earnings by the student. The first two components are
often referred to as explicit costs since they are obviously costs
of attaining higher education. The costs of room and board are not
included since a person has to live whether he is in school or not.
However, a portion of this expense maybe included as a valid cost
of education if it is felt that the cost of living in a college
comunity is higher than would be experienced otherwise. This adjust-
ment might be negative if it is felt that the cost of living in-the
university envirorutent is less expensive.
The foregone earnings component of private educational costs is
often overlooked because this amount is not actually paid by check
or cash; it is an implicit cost, It is, however, a very important
part of the total cost of education, possibly as much as 80% of
the annual per student cost in public niverysitie, and should be
included in a rate of return analysis since students generally
give up full-time employment earnings wvhile in college f 2, p.I 961.
To dyetermine the rate of return on an individual's investment
in higher' education, the expected investment retu~rns must be compared
to the expected costs. The applicable rate of return is that rate
which will- make the present value of the expected costs equal to the
presnt v 4aue o-the roji-ete retuvrns Anarat i ve formulatio
j:l
where
j sthe return associated 
with each period, j
j is the cost.associated with each period, j;
m is the total number of periods; and
iis the discount rate.
The rate of return estimated by this method would be a conser-
vative underestimate of the true rate since not all returns are included.
All costs are contained, but the nonpecuniary or consumption returns
that a person receives are not incorporated into the analysis
The rate of the return on the investment in education is an
important subject and should be carefully considered all college
or potential college students. It is, however, recognized by very
few. This lack of concern comes as a result of several factors, with
the most important being a general lack of knowledge concerning
basic econ aic principles and an overriding' desire to attend college
for other than monetary reasons.
Because there is a general absence of 'personal" rate of return
to education analysis; on the part of students considering college,
a computer program was developed to permit students to ascertain the
expected rate of return on their educational investment. This rate
+unptaitona.l Procedure
General Information
The ,'computer program, written in FORTRAN and currently being run
on a IBM 370/158, is designed to permit an analysis of rate of return
data for several students.1 Thus, the program is ideal for use within
the classroom to supplement a discussion of the costs and returns
associated with the investment in education. The output is designed
to give each student an individual computation 
of his rate of 'return
and to produce sunary tables giving minimm, maximm, and average
rates of return and average expected lifetime earnings with and without
college for the total group by sex, academic class, school, and cur-
riculum. These sunm~ary tables can be used to allow each student 
to
determine his position relative to his peers and reevaluate his own
expectatins.
The first input required is a card describing the data being run,
the number of curricula being considered, and the number of schools
or colleges being analyzed. This information is given in (12Mh,212)
format and is referred to as "CAR TYPE I".
Thfe. next data needed are tai. names- of each curriculum in (3X, 6A4)
format with the pzugram currently dimensioned to handle up 
to ninety
(90) curricula, CARD TYPE 2. One card is required 
for each curriculum
identification. ? ..Athough it.. is no_.t ncsyfrthe_ __ -....... _ se ca wrds to be ...
6
Cards giving the identification of the schools or colleges being
considered are the next portion of data required, CARD TYPE 3. Space
is allocated to handle up to twelve (12) colleges with each identif.{
cation put on a separate card in (3X,6A4) format. Again, card
numbering might aid in keeping cards in order and coding other input.
Individual Student Data
Information for determining the rate of return for each student
is obtained from the students. Each student is given a form as illus-
trated by Schedule 1 and is asked to fill in the appropriate information.
The first three lines are self-explanatory with each student giving
h'is name, sex, academic class, school.' and curriculum.
Each student provides the expected explicit costs of education
in the first column. p to 13 years of schooling, starting at age 18,
are permitted. Entries in this column should be annual estimates of
the costs of tuition, books, supplies, 
and any university cotmunity.
cost of living differential. Scholarships and other forms of educa-
t ional aid should not be considered in this section.
The data given in the second and third -kcolumns reflect the student' s
income expectations . The second columngives the annual income as
expected by the student without education past the high school -level,
while the third colunnpermits the student to give the 
earnings,.
scholarships, noher mntarysssance recevedwileatenin
-DATA FOR fETERNINATION OF
RETURNS TO COLLEGE EDUCATION
Name
Sex _ _ _ _ _ _ _
School ___
Academic Cl~ass
Curriculum__
Cost of
Tuition and
Books
Expected Income
Without College
Education
rau..r
a UY1e eMO Y.1 flu{ ratLYt/ trircN+u.-<14i1 uwaln.vutM Y4Mr.n
wyrcduw.11oo1w.r1.
w.u.u +r1w l. srw*r w1
Ww.rnraler.rrw lr
rp.toa/. w:aa.raa.rry
ynal.yy/. 
w1 a11ay.eo.' 
Y11A
r:YpNP pF1111Y11. 'YF 4111I'd!
11j1KYlIM +MU?kwelMlilWMweM
41Y N Y WIVFA
a1n1r+1 +.ouasrlrn :A 1 I t s
1111 1Y11i1aWM1 A.1MM4M1111
Expected Income
With College.
Education
Schedule 1. Example of form used to 
obtain student information for
rate of return analysis~
18
19
20
21
22
23
24
25
26
27
28-
29
30
31-35
36-40
41~-45
46-50
51-55
56-60
61-65
66-70
71-75
76-80
.. ,......,e...
,.. w.,,.... .,...,. ..
a
wso
r
.. wW.w..r aavm
a.,.......",
8
begin the discount process with the data entries at age 18, better
results are obtained if students are asked to assume that they are
eighteen years old, just graduated from high school, and are consid-
ering the possibility of additional education. With this assumption,
students start filling in the information on the first line of the
table. If they have already been in school for several years, they
should know the information "for the first few years of school and
have to estimate it for the years past their present position.
Data for each student are submitted with four sets of cards.
"CARD TYPE 4", the first of this series, gives the basic information
about each student in (40A1,815) format. These data are:
Column Code Name Information
1-4 No-me Student's name
41-45 :'_ AR Nuner of years in school (1.13 permitted)
46-50 NRETIR 
Retirement age (35+ permitted)
51-55 NOLASS Code for academic class (1-6 permitted)
56-60 NGURR Code for curriculum (1-90 permitted)
61-65 NSEX Code for sex (l mnale, 2female)
66~70 NQT Code for quarter or semester (1-4 permitted)
71-75 NYR Year
76-80. NSCH Code for school or college (1-12 permitted)
9
"CARD TY]?E 6" gives the student's income expectations without
college and "CARD TYPE 7"1 presents the expectations 
with college.
These sets of data are punched in (8F10.0) 
format with several cards
required for each.
Figure 1 depicts the normal deck and order of cards for a rate
of return analysis. Card types 4, 5, 6, and 7 are repeated for each
student. There is no limit. on1 the number of students that can be
considered.
Exam le Anal sis
This section presents a hypothetical example which illustrates
actual data input and the output generated by a complete analysis.
For the example, it is assumed that there are twenty possible cur-
ricula and six possible schools or colleges. The curricula being
considered are:
1. Agricultural Economics
2. Agronomy
3. Mimal Science
4. Horticulture
5. Building Construction
6. Interior Design
7. Chemistry
8. Geology
9. English
10. athemat is~
1.1. Accounting
12. Business Administration
13. Economics
14.Ma n ag;eient
15. Elementary Education
Card rpe 7 income 
with College Cards
r; YC~~d; IfrL-~~IYi LLYYLY~.~~;UY -- -----
Card Type 6 Income Without College Cards
U3sed for
each 
_____ T TTTT 
~.7
Card Type 5 College Cost Cards
Card Type 4 Student
t
s name Control 
infonation
Card Type "3 School 
Cards.
Card Type 2 Curriculum Cards
Card Type 1 Descriptive 
name
No. of Curriculum School Cards
//COSySIN DD ~
Source Deck
//FORTSY&INDI)*
1EXEC F UCL
Figure 1. Card order for rate 
o return analysis
11
The schools or colleges teing considered are
1,Agriculture
S2. Architecture
3. Arts and Sciences
4. Business
5, Education
6. Engineering
Data for three hypothetical students are presented on completed
Schedules 2, 3, and 4. Schedule 2, giving data for B. Ross, indicates
that she plans to attend school for four years, enrolled in English.
She plans to work for three years after graduation and then take time
td 'have children and raise them to school age.
T. Jefferson, with data given on Schedule 3, plans to attend
school for four years, work for two years and then return to school
for two years for a graduate degree. The third colsw of the.table
illustrates fairly low income levels during school years and higher
levels during non-school years. The low income during the first four
years could represent part-.time earnings and/or scholarships. The
slightly higher figures during graduatie school indicate the possibility
of an assistantship.
The data for G. Washington in Schedule 4 indicates four years of
school in Agronomy with expected retirement from work at age 65.
A listing of the data deck required for. the analysis of these three
students, the complete output, and a listing of the source program
DATA FOR DETERMINATION OF
RETURNS TO COLLEGE EDUCATION
Name B. Ross
Sex _ _= Academic Class Fr .
School Arts & Sciences. Curriculum Englsh
Cost of
Tuition and
ae 
Books
Expected Income
Without College
Education
Expected Income
With College
Education
4000 500
4000 800
4000 500
*4500
0 RAISE 0
0 0
090
7 00 9Ybul~i~i 000 i
Schedule 2. Example data for hypothetical student
750
775
800
o;EG
18
19
20
21
22
23
24
25
26
27
28-
30
31-35
36-40
41-45
46-50
51x-55
56-60
61-65
66-70
71-75
"76-80
? ...... .... .. ,.--...... w
,..,...... .....4. m._---...e. 
.
13
DATA FOR
RETURNS TO
DETERMINATION OF
COLLEGE EDUCATION
Name _T._ 3e$feson
Academic Class Sr.
~School Arch.* 
Curriculumnuid in -Coast.
Cos t o~f
Tuition and
Age Books
800
0
*0
Expected Income
Without College
Education
6000
600
65Q0
720Q
74-00
810
230Q
10500- 
IM
Expected Income
With College.
Education
500,
1800
35000
Schedule 3. Example data for 
hypothetical student.
Sex M.
18
~L9
20
21
22
23.
24
25
26
27
28
29
30
31-35
36-40
4145
46-50
51*-55
56-60
61-65
66-70
71-75
76-80
14
DATA FOR DETERMINATION OF
RETURNS TO COLLEGE EDUCATION
Name G. Washington
Sex H14 Academic Class Jr.
School Agriculture Curriculum Agronomy
Cost of
Tuition and
Age iBooks
800 
' .
825
825
900
Expected Income
Without College
Educat ion
5000
5000
5200
5200
6000
6000
6500
6500
6800
6800
7000
7400
7600
8000
9000
9500
9800
10200.
10500
11000
Expected Income
With College
Education
~100SIOQO
5150
Q00
00
9300
9500
10000
Y4 1Q2QQYw 1 IAr~i
11800
ducle 4. Excample data for hypothetical student*
18
19
20
21
22
23.
24
25
26
27
28-
29
30
31-35
36-40
41.-45
46-50
51-55
56-60
61-65
66-70
71-75
76-80
15
Suunary
The computer program and associated instructions 
presented in this
report have proved to be very useful in presenting the concept of
educational investment to students in principles of economics courses.
The required input data and result and analysis permit students. to'
comprehend the basic, concepts of a rate of return analysis 
for higher
education.
16
Selected References
[1] Carnegie Comission on Higher Education, 1973 .&herEdcaton.
'Who Pa s ? Who Benefits'? Who ShouldaMcGraw-'HilBookCo.,
New Jersey.
[a] Leftwich, R. H. and A. M. Sharp. 1974. Economics of Social
Issues. Dallas: Business Publications, Inc.
[31 Peterson, W. L.. 1974. Princi les of eonomics: Micro.
Homewood, Illinois: Richard D. Irwin, Inc.
[41 Shultz, T. We 1960. 
"Capital Formation by Education."
J. of Po l. Econ., vol. 68.
[51. 1967. "The Rate of Return in Allocating Investment
Resources to Education.' J. Hum. Res.
[61 U., S. Department of Commerce, Bureau of the Census. 1974.
Curn ouainReot Cnue noe U. S. Government
Printing office, Washington, D.* C.
17
APPENDIX
Listing of Input and 
Output from
Example Problem and Source 
Deck
18
INPUT
19
I AC J .C'LT(MAL 
1 CCoJO ICS
JJ1ahIMA/L SCIh 
ICL.
4t O R TI C UL ru:&
Sf+UILDI N6 
, C01S4tUC 
TIJON
7CMivL.ISTmY
6 L OL OGY
Sf NCL I 5
I ('l.ATttE>A T 
ICS
1 .3US1NES AUItS 
,TTI'q
1 3L C(3r'OOc T Cs
I L}. 9t E A !J v 
,;C A T 101"1
16 .ECIAL . tIUJCAT 
1o'i
l7ALfd)OS 'ACE L.4(,JtO&UE
?s WLtC"A'"I CAL . '31I 
IL " It C
I A iRICuj rur.
r" t N . r -
br.iiUCATI I'.}
75 7
4 u 0 400&
{5) 0
SO0
8606 t
ti~ 00
0 0
1 500 11000
I Jr.FFEPi .
10500 106
5 00G5.00
1,0500 10H~00
13Ou 0 13500
5000 5000
68300 L800
9860 I 
U1u00
1000 1 000
9000) (9000
1u900 11"300
20 0b
8)0f
400u
60
0
}?00
. 100
1500
74000
97000
10 500
55 $ 1 9 2 1 lTb 3
41 00
6
600
930
r~00
11000
1t 00
430 4.
0
43000
0
X0U
0 000
11 ;1400
x 300
000
o )
9001)
t400
1 O0t0
9i0u0
'p500
11
7 ?00
9500
14-400
r(
1000
.1 40 0
10000
4 65 3 2 1 1 76 
1
6000
7600
rU0
10000
6000
$o00
6100
1 0000
900
9300
10500
7,004
I
1
1
Y
20
OUTPUT
21
EXPECTED) INCOMES WITH ht~t1) WITHOUT COLLEGE EDUCATION AND R~ATE
OF RETURN4 FOR STUDENTS It EXAMPLE PROB3LEM
DURING SESSION I OF 197t )
THIS IS' T1$FOR ; FOSS
WHO. EXPECTS TO G0 TO SCHOOL FG
t  
4 YEARS
AND WO~t UNTIL THE AGE Of 55,. WORKING 34 YEARS AFTER COLLEGE.
THIS STUD~ENT IS ENROLLED IN ENGLISH
WITH THE EXPECTED INCOMES AND. COSTS GIVEN BELOW,
WILL HAVE AN APPROXIMATE PATE OF RETURN
ON THE I NNVE SrT E T IN EDUCATION OF 6 *.0 PERCENT .
R3 OSS
EXPECTED
IN*COME PER YLEAP
WITH COLLEGEF
EDUCAT I D
500.00
800.00
5.)0.*00
6000.00
6300.00
90()0 00
0.0
0.0
0.0?
0.0
0.0
9000.00
9500.00
10500.00
11000.00
EXPECTED"
I NCO' E PER YEAR
WITHOUT COLLEGE
EDUCAl ION
4000. 00
4000.00
4000.00
41VU U UU
4300.00
4500.00
4800.000
0.0
000
0.0
040
0.0
7300.00
7800.00
8200.00
8500.00
8600.00
EXPECTED
ADDI1TIONUAL
INCO; E PER LAr~
WITH COLLEG~E
EQUCAT ION\
.-4250.00
-3975.0 0
-4300.00
Suu
3700.00
31300.0 u
4200.00
0.0
0.0
0.0
0.0
0.0
1700.00
1700.*00
2u00.Ou
2400.Ou
TOTALS 277700.00 210.0485O
AGE
18
19
20
2?
23
24
26
27
28
29
30
31-3c:
36-40
41-45
46-5O
51 .55*
231700.00 42875.00.
22
EXPECI ED INCOMES 4I TH AND 'WITHOUT 
COLLEGE EDUCATION AND RATE
OF RETURN FOR STUDENTS IN 
EXAMPLE Pk0BLEM
DURING SESSIONl1I OF 1976.
THIS REPORT IS FOR T JEF 
FERSONJ
WHO EXPECTS TO GO TO SCHOOL FOR 3 YEAPSf,
AND-WORK UNTIL THE AGE OF 604 
WORKINtG 35 YEARS AFTER~ COLLEGE.'
THIS STUDENT IS ENROLLED IN BUILDING, 
CONS$WUCTION
WITH ThE EXPECTED INCOMES AND) COSTS GIVEN BELO ,
WILL HAVE AN APPROXIMATE RATE OF RETURN
ON THE Ir'JVESTM4ENT IN EDUCATION OF 7.0 PERCENT.
TJEFFERSON
EXPECT ED
INCOME PER YEAR
WITH COLLEGE
EDUCiAT I or
500 *0')
500.00
1500,00
1500.*00
8400.00
5000.00
O0 0 *00
10500.*00
106300.00
11 000.0o
11300.00
1 1800.00
12000.00
12400.00
12600. 00
13000.00
13500. OO
14000.00
EXPECTED
I NCOME PER YEAR
WI IHcdjl COLLEGE
EDUCATION.
6000.00
6000.00
6200.00
6300.00
6s400.00
7000.00
7 00.00
7400.00
7500 * 00
..7000.00
p100.00
b200.00
(-300.00
{9000.00
9500.00
10000000
10500.00
10800.00
11000.00
EXPECTED
ADDIT IONAL
I NCO E PER YE Is
WITH COLLEUE.
E DUC 1 I O;'
-6300.00
'-5525.40 u
14 00 0 0/
-3200.00
-34000
3000.00
2 00.00
2r,900.0u
3100.Ov
3500.00
3000.Ou
'i00.00
2600.00
2z >00 *00i
2700.*00
3000.*00
TOTALS 473300.00 
360.0735O
AGE
18
19
20
21
23
24
25
26
28
29
3 0
31-35
36-40
41'-45
46-50
5 1-55
56-60
396700.00 71325"Ou
23
EXPECTED.INCOMES WITH1 AND WITHOUT COLLEGE EDUCATION AND) PATE
OF RETURN FOR STUDEt~JTS IN EXAMPLE PPOUrLEM
DURING SESSION 1 OF 1976.
THIS REPORT IS FOR G wASHINGTONi
WHO.EXPECTS TU GO TO SCHOOL FOR 4 YEARS
AND WORK AUNT IL THE AGE OF 65t .WOPtlING 44 YEARS AFTER COLLEGE.
THIS STUDENT IS ENROLLED IN AGRONOMY
WITH THE EXPECTED INCOMES AND COSTS GIVEN BELOW,
WILL HAVE AN APPROXIMATE FATE OF RETURN
ON THE INVESTMENT IN EOUCATION OF 9. 0 PERCENT.
G '4ASHINGTON
EXPECTED
INCOME PEP YEAR
WITH COLLE('E
EDUCAT ION
1000.00
1000.00
2000.*0 0
8100 * .00
6300.00
8700.Oo
9000.00
9000.00
9300; 00
9500.00
10000000
10000000
10500. 00
10600 *00
10900 *00)
11300. 00
11800.00
12200. 00
EXPECTED
I NCOM E PER YEAR
WITHOUT COLLEGE
E.DUCAT ION
5000.00
5000.00
5200.00
6000.00
6500000
650.00
6800.a00
6800000
7000.00
7400.00
7600.00
6000.00
9000.00
9500.00
9800.00
10200.00
10500.00
11000.00
EXPECTED
AUDIT 1I4AL
-INCO}"+E PEP YEAR
WITH COLLEG~E
EDucAT 1Oi*
- 00.00
"4825.0 0
"4025. 00
2100.00
1 300.0;j
2200.0u
2200.00
2200.00
2J00.Oui
2100.00
2400. Ov
2000.00
1500 *0 l)
1300.00
1100.00
1100.v
1300.00
1200.00
TOTALS 472900.00 410.04500
AGE
19
20
23
24
25
26
27
28
29
30
31-35
36-40
41-4 5
46-50
51-55
56-60
61-65
421000.00 48550.00
SUMMARY OF INCOME AND RATE OF RETURN INFORMAT~ION
AVERAGE INCOE
WITH COLLEGE
NUMBER EDUCATION.
3407966.63
AVERAGE INCOME
WITHOUT COLLEGE
EDUCATION
349800.00
AVERAGE
RATE OF RETURN
8.0
MIN
RATE OF RE TUN
.7.0
MAX
RATE OF RETURN
9.0
SUMMARY OF INCOME AND RATE OF RETURN INFORMA2 ION BY SEX.
AVERAGE ICONE
WITHOUT COLLEGE
EDUCATION
473100 .00
277700.00
AVERAGE INCOME
WITHOUT COLLEGE
EDUCATION
408850.00
231700.00
AVERAGE
RATE OF RETURN
8.0
8.0
RATE OF RETURN
7.0
MAX
RATE OF RETURN
9.0
8.0 8.0
SUMMARY OF INCOME AND RATE OF RETURN INFOR.TION BY ACADEMIC CLASS.
AVERAGE INCOME
WITH COLLEGE
EDUCATION
277700.00
472900.00
473300.00
AVERAGE INCOME
WITHOUT COLLEGE
EDUCATION
231700.00
421000.00
396700.00
AVERAG
RATE OF RETURN
8.0
9.0
cqy~l7.0
MIN
RATE OF RETURN
8.0
9.Q
7.0
mAX
RATE OF RETURN
8.0
9.0
7.'0
CODE
I
2
NUMBER
2
1
CODE
1
3
4
NUMBER
1
I
SUMMARY OF INCOME AND RTE OF RETURN '2iFORMATION BY CURRICULUM.
NUMBER
AGRONOMY1
BUILDING CONSTRUCTION I
ENGLISH 1
AVERAGE INCOME
WITH CO LLEGE-
EDUCATION
472900.00
473300.00
277700.00
AVERAGE INCOME
WITHOUT COLLEGE
EDUCATION
421000.00
396700.00
231700.00
AVERAGE
RATE OR RETURN
9_.0
7.0
8.0
MIN
RATE OF RETURN
9.0
7.0
8.0
MAX
RATE OF RTURN
9.0
7.0
8.0
SUMMARY OF INCOME AND RATE OF RTURN Il1FORMATION BY SCHOOL OR COLLEGE
CODE
AGRICULTURE
ARCHITECTURE
ARTS AND SCIENCES
AVERAGE INCOME
NUMBER WITH COLLEGE
EDUCATION
1 472900.00
1 473300.00
3. 277700.00}
AVERAGE INCOME
WITHOUT COLLEGE
EDUCATION
4 2 1000.a 00
396700.00
231700.00
AVERAGE
RATE OF RETURN
9.0
7.0
8.0
MIN
RATE OF RETURN
9.0
7.0
8.0
MAX
RATE OF RETURN
9.0
7.0
8.0
26
SOURCE DECK
27
C THIS COM PuTE '.PGPAM 
tAAY USED TO CALCULATE THE
C ATE OF RELTURN TO 1 COLLEGE 
EDUCAVFI ON FOR.. INDIVIDUAL
DC 
TU ENTS, I T SILL 
ALSO PRESENT 
SUMMARY 
TAB3LE 
FOfR A
C SET OF DATA GIVING AVERAGE 
EXPECTED LIETI.M EARNINGS
C WITH AND WITHOUT C LLEGE , AND 
THE AVERAGE ,T E MAX IMUM ,
C AND THE. MINIMUM RATES 
OF RETURN FOR THE TOTAL AMPLE.
C AND BY SEX, ACADEMIC CLASS, CURPICULUM1, 
ANt) THE' SCHOOL
C OP COLLE~I,
C BASIC INPUT TO THE PROGRAM 1-IS AS FOLLOW 
:
C CARD TYPE I
C NAM-. OF CCOU --NEC () ---- I N (I1?A4) FO MAT.
C t UM L OF CURPICUOLUM CAPS- - -f COuL..-, -C0L,. 49 50 .
C NUMBER OF SCHOOL CARDS---NSC---.COL.s51 
& 52,.
CCARD.TYPE 2
C 'CU PICULUM NAME CARDS---,.*CUPRCD({ )-wr.IN 
(3X,644) FORMAT.
CONE CU I CU..LA NAME 'ON EACH CAPD.
C CARD TYPE 3
C SCHO1+..OLROPCOLLEGE Na,. CAR !S---S.wCCOOJ( )-N 
(3,,f .A4,)
C FO MAT . ONE w C C Cpl.. NAME 
ON E ACSH CA# D.
C CARD TYPE 4
C NAME OF STUD NT-w, t. ME 
( )
C EXPECTEL)NU kf EP OF Y E AR S I N COLLEGE -NYLAS
C (13 YEARS PERMITTED),
C E)P-ECTEU)PEIIPLEMV ,TA(:E o ft14PETIRE
C (A( .5 OF 35 TO -
E ITTED)
C STUDENT'S A C A D E IC Ci ASw---NCL AS
C (6 CC)UE SPE l ITE 
D),
C STUDENT'S CUJJRNI CI _U:A weNCURB
C ST U E OT S S EX .---..K: X
C {(I :ALE,2 EMKAL.E.),
c: QUARTER P CRSEMESTER OFD COURSE -- -QT
YEAR OF wift--NY
C ST u DEN 'sSC0f OL-p .>SC H
C --- IN (~+OAi,1S ) FOPMAT.
C CARD TYPE
C A NNUJAL COST OF BOOTS TUITION, AND OTHER COLLEGE 
COSTS5
C (NOT ROOF: AND f5OAHD) FOP EACH YEAR IN SCHOOL---
C COL CO T () -. ,.IN (3F I O.0) FO MAT .
C MAXIMUM4 OF 13VALES
C CARD TYPE 6
C ANNUAL LA -4I NGS LEX.FECTDEfBY STUDENT I F H -1t1OES NOT
C ATTEND COLL.EGE094w--HISCHOOL( --
it8F0C
C FOR AT .
28
C USE AS MANY OF CA% .TYPE 12 3ASNE ,ED.FQF&ALL
C CURd~ICULA AND SCHO(OLS.
C ONE OF CARD) TYPE t 1iSREQUIRED FOR EA\CH STUDENT.
C USE AS MANY OF CAk TYPES 5, 6 AND 7 AS #E. L 'C3 ALL
C- COSTS AND EXPECTED INCOMES* 83EG1N EACH OF THE THREE
c l YPL OF DATA ONI NEW CARDS
C ONE " El-O CARDS TYPES 41,596 AN D.7 I REQUIRED FO~
C IF SUMMARY TABLE 'H SEX, ACADEMIC CLASS, CURRICULUM,
C AND SCHOOL ARE NOT DESIRED, LEAVE THESE FIELDS BLANK
C FOR EACH S 'U ENT .
DCPA,'N NS1U N NAE( 1?) N4AM( 4) ,COL C O S(15),H I$CH(24) ,
I COLG(4),AIN (24) V$),SEX( ,),CLA"SS(6, ),CU k(
290 , 91 EX (2) , ICLASS (6) , ICUPR (90) ,CUNFRCD (90,6) !SC ( 12,6)
3,1SC,(L2) #SCCOD(1, ).
INTEGER BLANK/ *'/
DO 1'+()J~1 9
0O -100 I_1,
0 -20I;YNoC
11~0 CUP S ,J)w .0
1 0 CUP ,) G.0
0 14 
CONTINUE
SO i I>S 10 'h20
SEX( 
r5) 0 ,60
DC160 i 1.
160 4:,1 S y 00
DO0:170 1 NCODE.
C,.f? 1 5 10 
*0
17 8;0 = Th..U
SC (5) --If20
180O(T r,0 .
t(0TAL 1.0o 0
TOTALC=U 0
29
C READ) b'.PUT DATA.
EAt)(b 30+ ( 4 U 1J) 19I6) 91 1 4C)
190 L(~4,~DO)NAMEi,NYEAk , NP T P , NCLASS, NI.P1.
1Ns~xNi N Y R, NSCh
200IF(NSELX..(T.?) GO To 210
IE( fICL ASSw.GT .6) G TO 220f
1IFUICU.1 GT.UCODL 0/0GO ro230
IF (NSCH. ,T .NSC) GO TO 240
Go()To 260
1: ITfS ( 5o) NAMUI
E A .,({I #(4 ,END = l) NA .,NYEAkS, NP _T1IkNCLASS, 1CUHH",
JI 4NS X , NOT ,NY , NS C H
IF(NAME (1) .EQ. BL K) (4) Tu 2.
G(O To200
2 2C iITfA6,760) NAME1~
HEf ~,70,h~0)NAME ,NY F:.A k # .T. :. CAS$5, f ,P
1 NSUSX .NOT NY ,N5S".H
IF(CND .:(I) .EOQ.bLANK) GOV.) 2 50
5O TO 200
230 W I T (,770) NA E.
'rUAD (Ji 1, 0,END5=0 0) NAME ,NY A S,NE Tl ,NC LAS,NC U P,
11IF X 
,N1 T f 
Y, 
NAi4E (I)3 
,Eir4. 
L /- \A. ) 
(. TO 
2 0
60 TO 200
240 WR~ITEL(*,M80) NAAIr
R ,AD(JIU74() .L u - C} ;, At =,NYUASANRE I ,CLASS,NCPF
1 v E"X ,NOT ,NY. ,t N4SCH
IF (N)AM E (1) .f OJ.EL N~ ) (4) TO 25(0
00O TO 200
?50 EAD(I ;740,U ;.~0 C?) I.YLfSNET #C/S,'C
B45LS X ,NiT fiY R, 'SCt
I(NAME () . E. HLAN,' ) ,GOTO 2: f
0,0 TO20 0
260 HVAf)D_0.O
TOTHI-O00
1OTCO Now00
TOTAD 0.u
C NW0P : IS T H E. NU01 -F:.OFOF ORING Y.ANS.
C NI NC IS THE NNUM'EP OF LINESS FILLEDI)I O HANuOI .
C (TJHiE NUME OF DATA ELEMENTS)
C Nt OT IS THES NUM6SE..?OP"YUR'S F 064 AGE 
Iit} UNTIL PE TIRE<.
.,TO.'TNFiUT1FT.tl 0Il
30
0O 270 I1 ,NYEA
AfINC(1)COLL EG i.CLOSI IC(I) )
270 CONTINUE~
V-Y=YEAtS+ I
DO 80 I-NY-9NlNC
ADOINC(I)CC'LLLG(I)-tHU$CH(I)
2 G CON~TINUE
DO 30. 1 M1 ,NINC
IE(IG T. 13) GO T() 290
TOTHI=TOTHI+siISCH (I1)
TOVCO TOTCO*COLLLG (I1)
TOT AD=TOTAD+ AINC (
0D TO 300
290 ! TOTI=TTI+ICH()*=.0
TOTCO=T rCO+COLLEG (1) *5 ()
.OT AD=TOTAU+AUINC (I) 50
'300 C011,1 INUE~
u)O310I=113
310 CONTI ! ULE
DO 330 Iir 44NINC
DO 320 L =1.9
~V (PiJ) :AD NC (1)
J J+4
33 CONTINUE'
DO 340 1 1,NTOT
1F (PV(1) .LT.0.O) Go TO 350
340 CO4T IN.UE
IWETC=I E1TC+1I
IRET=1
GO TO 400
C CALCULATION OF RiT OF PETURN ON ItNV 'STMiL1"I N
C" 
.. :3 -'A 
I1 
NT I 
H 
I SO..N 
RA E
3 50 X I NT=. 0
P VA:) 1=999 9999
1)0 370 I--1,200
DO 360 J1.,NTOT
V4-VA)+PV (J) /(1.00+X ItT) **J
31
PAT370CO NTIN 
UE
J90 CONTINUE
XINT .XINT*100, 0
00" E680 ) 'NA,',C, NOT ,NYf
WRUTE(6P310) NAME,NYfEAPS,N TI1tNIpO K, (J~CD (tCUNN'J)
1F (I~.EOL.l) GO TO 410
WRITE(6,k320) NAB' EvXINT
!:.; TO 4 ?0
17"10 WPT a30) NAM4F
4 wPiT(f,* 40)
.00 430 1=1,13
IAGE=1+17
430 "WIT E(6,650) lAGEt,COLLE(I),H.I SCH(I).ADIN C(I)
DC) 440 1I14,NINC
IA ,EIIAGE+4
44+0 W ltTF'6 60) IA(3E,IAE1,CLLEG(),HISCH(1),ADINC(1)
TIE(b~30)TOTCO iTTHI ,TOTAO
U TL-) SUMMARY TILES
IF (I RT .LQ,1) G(-- TO 190
TOTNG=.'0TOTNO. I* 0
ST AL C TOTAL C+T T 0C
T OT AL HTOTAL H+TOTH I
'TOTALF .T.OTA L +X Ni T
IF(X NT*LE*XMl ")XM~1 A~INT
IF (XINT.(E.XMAX) XMAXX IN'T
1F (INEX EO,0) GO0 TO 4f,0
,3 (SEX.I) zS (NSEX., 1)+1. 0
SF.X (UASE Xq2) EX (NSEX ) +TO0TCO
?EXU(~tEXv:.3) zS N.(SE.43) +TOTHI
SX (rSEX) SEA(NSE X.4.)+XI NT
i (XI' T.LE, SEX (NLEX, ) ) SEX( NSEXS)~INT
IFX1T.(,.,S At: SEX,6))E X (NSE .6) XIN\I"
J:}I F (NCL ASS EQ.0) GO TO 470
CLASS (NCLAS,1) CLASS (NNCLASS, 1) +1.
CLASS (NCL ASSf 2) =CLASS (NCLAS,2) +TQTCO
CLASS (NCLASS, 3) -CL ASS (CLASS, 3) +TOTW'I
CLASS (NCLASS,4) .CLASS (NCLAS.4) +XINT
.FR(NCU.1F a, I 
CUSP NCUF 1.'P, ) Z 
1 (~ ~')= 
N
32
(AYF VP(I C UNR ,3) =CUPP ( N CU0RR P3)}.TTHf3I
(> 0 (CUR4pC.U R(NCURP,4) +.INT
IE(X INT.LCN(NUN5)CURR(NUR,$)-INT
?F{(X INTG.CU(C UPRPR,6))}CURR (NUR,6) =XINI
8 F 
.Q 
) 
TO 40SC 
'N5CH 
1) =SG(NSCH,1) 
+1
CC SHq 2} =SC(SH2){OC
SC (\$CH*J)$C (NSCH,3)+TOTHI
%C('NSCH4) =SCNSCH,4 XfId
tAli 1 .ESC(NSC,5)) C( SH )XINT
1F (X1N1GE.SC(N5H,6))}S(NSC.6)XINT
49 0 '0TOy 190
v VIT6 SUMMAqY TAILLS.
A)G w R ITE(6, 880 )
ITOTALITOTNO+ *5
TOT ALH=TUTALH/T TN~J
TOCT AV.=T 
TAL /TO?
TOTALR=TOTAL/TOTNO
1&TE: (6,90) ITOTAL,TOTALC,TOTALH,TQTALN,XMMIN,XMAAX
iFCSCX1 1),EQ.0.O.ANiO.SEX(2,).EQ .0.0) GO TO 550
WP.ITE (60o10)
A520Ih1 
i2
.IS X(hfl*E.u.) 
EX(150.
[R( SEX(I1).L..0) O TO50
1 '116 v risit 1
050 i11,2 A
:F i xm*E.O) GO T} O 5T0
-9 W(LAS(I) TAS0.G)/CMAXS.I
5 :C0 %0T:1N 
U lA
VIC-( lASSId)E,.) OT 8
33
IF(CLAS.S{1,1). t,0,0) 
GC) TO{600
600 CONTINUE~
}10 iiAX 0
DO 620 t1hNCO0E
620 CONTINUE
I F(MAX E 0 o) GO TO 670
1)0 640 -I , AX
FChI 4 {11?.:;.c:. )GO TO 640
00 630 J2?4
630 :UP I13)-C P(I.J.! 
~ k (I * 1't )
'40 CONTINUE:
00 650 I I. MAX
6~5 1ICURB ( I ) CUPd {(191) 
4.~
-W i~ITS f6 to950)
WRITE (69960)
DO 660I1MX
IE(CUR(.f . e.0) 60C TO 660
660 CONTINUE
670 JPITF:Y(6,980)
00 680 1I"" , SC
DO0 700 11f C
IF (C (1 ') .F. 0 :';t'('700
00 6940 J.2,4
90SC (I
9
J)=SC(I
9
3J)/SC* I,1)
700 CONTINJUE
0 710 I1I1.NSC
IF(SC(I9i).F .O.OO) Go TO I710
':{T (s97 ) SCC0 (1.3J) , 1 96) ,IBC (1) ,(SC 193,) 
~)
710 CONJT I WE
~TE (6999U) 1ETC
720 0RP AT ( 2A4. 212)
730 FORMAT (.3X.6A4 )
140 FOR A( 4 0A 131I5)
7 0e FO"AT(1Hn1,S X,'It vALJ iDVALUE 
FO SLX Fu h*140-41)
760 FOt MAT (1 1 , X , $lNVAL... It:' VALUE FO 
ACAGDEf;1 C CLASS ' ,
170 F O 'AAT(1H1 
,5X, $INV/3L IU1 
VALUE FO CURPI 
CuL{_.~'~U , )$0A1 
)
780 FORMAT1(H , Xv IINVk-L .r VALUE FiOR SCHOOL j FOR ' ,4rjA1)
'70 , Cw t (i'r 1.0)s
34
1 ,1";TO(1)O TOSCHOOL FOP I ,1 YERS'/5;K , 'AN O WORK (j
29r'N TIL...THE. AGEOF' t12*'. w OP. I N 'II?'' YEARS A F TL.
3101 COLL E.'/# ,'H ISI STUDFWrNT IS ENROLLED 
I N',A4+).
3~20 FORMAT (///SX,'WITH THE EXPECTED INC ...ESANI)- COSTS
1'GIVEN BELOW, ' ,40AI/5~X,'wIL HAVE AN APPROXIM4ATE FATE'
#. OF RE TtkN' /X , #O N THE INVEST iENT IN. EDUCAT ION OF fit
$30 F0MAT(/// X, 'WITH THIE EXPECTED INCOA S AND COSTS '
1'GIVEN BELOW* ',40.A1/5X,'WILL HAVE AN INFINItE 
RATE#
290 OF PTN'SO THE. INVESTMENT I N EDUCATION.')
640( FO~tAt///T62EXPECTED/T6'4GE',-! T t,'tEX 'CT EU',T +l
1,'#XPECTED',T 61, 'At)D(TIONAL'/T1t6,'4INCO PER YE.Af',T37
29'INCOME PERYEAR' ,T5 ,#INCOMERLYYF'/T1$,'WITH CC,
3, #LLEGE 19 T37,'WI THOUT COLLEGE1'T 60 "WITH COLLLE' /T
420, 'EDUCATIONN' ,T41,'EDUCATION ',T6. 'EDUCATION')i
8350 FO MAT (T7,12,T19.9.,110,F9.2,T62,F9. )
860 FORMAT (T5912, ' ,TT '19,-F9.?2, r4O, F, 2, T F'9.2 )
870 FORMAT (/T5,9'TOTALS #,T8.,.Fi0. 2!s399F1. 2T(1IF 10.2)
880 FOPAT (IHI ///T30,'#SUMNARY OF INCO!AE. AND R~ATE OF -PETU'
I ,'N I NROt ~AT 
IOCN'#)r
~90 FOAT (///T2 M, # V : A E I NCO#E#T4 ~, #'AV MAGE INCOME'/T?
19#'WJITH COLLEGE', T 8,'wI TROUT COLLEG .' ,T7 ,'#AV .RA;. #,
2T 91t 'MIN' ,T1Th, *'MAX #/T21.,'NUMB~ER' vT31 'E#DUCATION' Tbo
3'EDUCATION' 9T6A8, 'RATE OF RETURN' ,T8 , 'P~ATS. OF RETURN' ,
4T103, ' ATE OF RETUPN')
~00 FO M. T (/12, I.3,T 0,F1o'.2 T49,F1o.?,r73,F'4. l1,10,F4,I
910 FORMAT ( I HI //' T30, ' SU. (MAY OF INCOME AN() RATE .OFRETURN' ,
1 NF OP !M'AT 1ION'T EY :
920 FORMAT (///T? 8 *'AV&QGL I NCOMAE ' #. 4 * AVERAGE INC.~. * #/
11 9, 'IITHi COLL % #,T4 . # 1THUT COLLEGE #-yT72,'AVLNAGL
2T1, 'IN' 108 ,'MAX'/T14, 'CODE' ,T2)1, 'NWL'T31, 'ELU'
3 1 CArT 01"1'tT50, ' :.(C.AT ION' , T68,v' ATE 
OF *RE URN 0 ,T~,' '
# 'ATE--OF RETURN' #T 1011,#PATE'-'OF tT U P #
I ,F4, 1,1TI06,F5.I)
940 FORMAT (1I1/T 30 # #5UMMA Y OF I NCO='E AND RATE OF RETURN'
1 #' fNROP='MT ION 13Y ACADEMIC CLASS.'#)
x9.50 F O NATf;IKI //T30, # u$ ,0AApY OF INCOM1,E AN4)' ATE OF RETUR~N'
960) FOMAT (///T28, #AV_ ?AG&I INCOME#',T48, #'AVE9PAGE. INOM' /
1T29, #41 T' COLL.EGI # T4 , .I TROUT COLLEGE',T-7?, #AV 
f AGE'#
T ; , r ,# # . .! $ ,131I9 EDUCAIO'4#,
3T68 'RATE OF PfKI'UPN' ,T8,'RATE OF RETU N'T103,'tRAT'
I . 111 J6,F.i
35
990 F OFMAT (/// f TOTAL OF$'13, * STUDENTS 
HAVE AN INFINITE'
li,'tfRATE OF RETUR~ N THEIR INVESTMIENT IN EDUCAfIO N.' 
)
1000 STOP
END