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
Next > < Previous

Related Solutions

You are doing some long-range retirement planning. On the day you retire (23 years from now)...
You are doing some long-range retirement planning. On the day you retire (23 years from now) you want to be able to withdraw $200,000. Then, you want to withdraw the following amounts at the end of each year after that (during your retirement period).                            Years 1-4            $160,000                            Years 5-9            $175,000                            Years 10-15       $165,000                            Years 16-26       $145,000 At the end of the 26th year in retirement, you’d like to have $500,000 remaining in your retirement account available...
You are doing some long-range retirement planning. On the day you retire (23 years from now)...
You are doing some long-range retirement planning. On the day you retire (23 years from now) you want to be able to withdraw $200,000. Then, you want to withdraw the following amounts at the end of each year after that (during your retirement period).                            Years 1-4            $160,000                            Years 5-9            $175,000                            Years 10-15       $165,000                            Years 16-26       $145,000 At the end of the 26th year in retirement, you’d like to have $500,000 remaining in your retirement account available...
You are doing some long-range retirement planning. On the day you retire (23 years from now)...
You are doing some long-range retirement planning. On the day you retire (23 years from now) you want to be able to withdraw $200,000. Then, you want to withdraw the following amounts at the end of each year after that (during your retirement period). Years 1-4 $160,000 Years 5-9 $175,000 Years 10-15 $165,000 Years 16-26 $145,000 At the end of the 26th year in retirement, you’d like to have $500,000 remaining in your retirement account available for withdraw. During your...
Q1. You want to retire in 40 years and you must start planning now. You understand...
Q1. You want to retire in 40 years and you must start planning now. You understand that it is time to prepare an analysis for you. a) What approach will you use to advise yourself. b) What is your specific suitability profile? c) What is your investment plan for retirement? d) What will be your asset allocation and what is your expected return throughout your life for each allocation?
You plan to retire in 30 years. Beginning in 31 years from now you wish to...
You plan to retire in 30 years. Beginning in 31 years from now you wish to have an annual retirement income of $80,000 / year as measured in today’s dollars. The inflation rate is assumed to be 2.5%. Each year in retirement you wish to have your retirement income grow by 3% per year. You plan on living for 35 years in retirement. Starting in one year from now you are going to make annual deposits into a savings account....
Kim and Kayne have been dating for years and are now thinking about getting married. As...
Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated​ couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn ​$72,000 ​(so their combined income is ​$144,000​). Using the tax bracket information    Taxable Income   Tax Rates   Individual Returns   Joint Returns 10.0%   $0 to $9,075   $0 to $18,150 15.0%   $9,076 to $36,900   $18,151 to $73,800 25.0%   $36,901 to $89,350   $73,801 to...
Kim and Kayne have been dating for years and are now thinking about getting married. As...
Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated​ couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn $70,000 (so their combined income is $140,000). Using the tax bracket information​, calculate the combined tax bill that they would pay if they remain​ single, and compare that to the taxes they would pay if they were married and filed a...
You plan to retire 35 years from now. You expect that you will live 25 years...
You plan to retire 35 years from now. You expect that you will live 25 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of...
Assume the following scenario: Bob plans to retire in 15 years from now and wants to...
Assume the following scenario: Bob plans to retire in 15 years from now and wants to have the following stream of CFs after retirement. Monthly payments of $6,000 for 10 years starting right after retirement (the first payment will be at the end of the first month of year 16). He then needs an extra 10000$ with the final payment (that is at the end of the final month of year 25). Starting from year 26 he wants the monthly...
Assume the following scenario: Bob plans to retire in 20 years from now and wants to...
Assume the following scenario: Bob plans to retire in 20 years from now and wants to have the following stream of CFs after retirement. Monthly payments of $4,000 for 15 years starting right after retirement (The first payment will be at the end of the first month in year 21). He then needs an extra 50000$ with the final payment (final month of year 35). Starting from year 36, he wants the monthly payments to be 6000$ for 10 years...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT