Consider a individual who currently earns $20,000 as an unskilled laborer. Suppose that by ttaking courses full time at a communit college for one year, the person can qualify for a more skilled job paying $23,000 that is guaranteed to last for 10 years (after which the person wuld retire). Assume the costt of tuition and books at the community college for one year is $2,000 and that the current interest rate is 6%. Is this a good investment?

Consider a individual who currently earns $20,000 as an unskilled laborer. Suppose that by ttaking courses full time at a communit college for one year, the person can qualify for a more skilled job paying $23,000 that is guaranteed to last for 10 years (after which the person wuld retire). Assume the costt of tuition and books at the community college for one year is $2,000 and that the current interest rate is 6%. Is this a good investment?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.3P

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