Question

In: Economics

Consider a worker who is planning to retire five years from now and is thinking about...

Consider a worker who is planning to retire five years from now and is thinking about not working for the next year and instead completing a one-year Master’s program. If they do not complete the program, they will earn $C one year from now, $C two years from now, and so on through five years from now. If they complete the program, they will pay $A one year from now and then earn $B each of the subsequent four years. Assume the worker’s only concern is their financial well-being.

PLEASE PUT AN EXTENDED WRITTEN ANSWER WITH GRAPHS IF POSSIBLE, thank you

Solutions

Expert Solution

If the Worker do not go for masters he would get ($C+ $C+ $C+ $C+ $C)= 5 $C

And if go for Masters he would get ($A+ $B+ $D+ $E)

And considering the other fees he will face if he goes for masters, if

5 $C < ($A+ $B+ $D+ $E) - Other fees

He will go for masters , otherwise not.

Rahul Sunny answered 1 year ago
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