economic question

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(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.

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