Suppose you only live two periods. If you attend only High School you will earn $15,000 in each period. You also have the choice to attend three different colleges for one period to receive:
College A: Tuition = $10,000, Wage after graduation = $35,000
College B: Tuition = $20,000, Wage after graduation = $50,000
College C: Tuition = $45,000, Wage after graduation = $75,000
Should you attend High School, College A, College B, or College C? Assume the discount rate is 5%.
Multiple Choice
High School
College A
College C
College D