economic question
gaueh.fa(50 points) Construct a realistic present value for your potential lifetime earnings
over your entire working life. Begin with your age(19) when you entered your first year
of undergraduate education, which will be treated as t is equal to 0, and end with
your projected retirement year, which will be labeled as R.
Each parameter that goes into your present value calculation needs to be
customized to fit your life. These components may include an interest and discount
rate; any schooling costs; annual earnings at your completed schooling level, and in
your selected occupation, industry, etc.; and how the earnings will change over time
with on-the-job training. Please additionally incorporate at least one work
relocation into your calculation. Then, calculate your present value of lifetime
earnings. The calculation portion of your answer should be limited to one page.
Once you have done the calculation, briefly explain the origin of each component
and why you have chosen it, along with every assumption being made, in essay
form. Then, briefly explain whether you think your present value of lifetime
earnings is a small or a large number relative to the average person and why you
think that is so. This essay portion of your answer should be limited to two pages
and in paragraph form, and it will be graded on its completeness and its originality.
- 7 years ago
- 15
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