Business, 25.12.2020 16:40 scarletmartinez

In 2012, the Clarkson Community Schools in Clarkson, Michigan paid its starting teachers $ with a bachelor's degree and $ 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 and want to maximize your life-time earnings. To get a master's degree takes one extra year of schooling and costs $. Should you get the master's if you cannot work 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, for simplicity, in your calculations, assume that you'll work forever, with payments made at the end of each year forever, and consider interest rates of % and %. (Hint: You can get a reasonable approximation to the answer by assuming that you work forever.) First, assume the interest rate is %. If you can work while studying for your master's, then you get your master's degree, and if you cannot work while studying for your master's degree, then you should not should get your master's degree. Next, assume the interest rate is %. If you can work while studying for your master's, then you should not should get your master's degree, and if you cannot work while studying for your master's degree, then you should not should get your master's degree.

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In 2012, the Clarkson Community Schools in Clarkson, Michigan paid its starting teachers $ with a ba...

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