Please answer In 2012, the Clarkson Community Schools in Clarkson, Michigan paid its starting teachers $38,087 with a bachelor's degree and $41,802 with a master's degree.(For simplicity, assume that these salaries stay constant and do not increase with experience.) Suppose you know that you want to work for this school district andwant to maximize your life-time earnings. To get a master's degree takes one extra year of schooling and costs $20,000. Should you get the master's if you cannotwork during that year? Should you get your master's degree if you can work while studying for your master's? You'll work for 40 years and then retire, but, forsimplicity, in your calculations, assume that you'll work forever, with payments made at the end of each year forever, and consider interest rates of 2% and 9%.(Hint: You can get a reasonable approximation to the answer by assuming that you work forever.)First, assume the interest rate is 2%.If you can work while studying for your master's, then youget your master's degree, and if you cannot work while studying for your master's degree,then youget your master's degree.Next, assume the interest rate is 9%.If you can work while studying for your master's, then youget your master's degree, and if you cannot work while studying for your master's degree,then youget your master's degree.

*Answer: If interest rate is 2% PW of earnings if one does not go for masters=38087/1%=$1,904,350…

aximize your life-time earnings. To get a master's degree takes one extra year of schooling and costs $20,000. Should you g that year? Should you get your master's degree if you can work while studying for your master's? You'll work for 40 year in your calculations, assume that you'll work forever, with payments made at the end of each year forever, and consider inte can get a reasonable approximation to the answer by assuming that you work forever.) me the interest rate is 2%. work while studying for your master's, then you get your master's degree, and if you cannot work while studyi get your master's degree. me the interest rate is 9%. work while studying for your master's, then you get your master's degree, and if you cannot work while studyi get your master's degree.

aximize your life-time earnings. To get a master's degree takes one extra year of schooling and costs $20,000. Should you g that year? Should you get your master's degree if you can work while studying for your master's? You'll work for 40 year in your calculations, assume that you'll work forever, with payments made at the end of each year forever, and consider inte can get a reasonable approximation to the answer by assuming that you work forever.) me the interest rate is 2%. work while studying for your master's, then you get your master's degree, and if you cannot work while studyi get your master's degree. me the interest rate is 9%. work while studying for your master's, then you get your master's degree, and if you cannot work while studyi get your master's degree.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 7SQP

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