Raejean is a high school graduate deciding whether to go to university. Post highschool life can be summarized in 2 major periods: In the first period, Raejean can either work for a salary of Yhs, or can attend university at a cost of $500O. In the second period, Raejean will earn Yhs if or Yuni , depending on the decision to attend university or not in period 1. Money can be borrowed or invested at rater.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Raejean is a high school graduate
deciding whether to go to university. Post
highschool life can be summarized in 2 major
periods:
In the first period, Raejean can either work for
a salary of Yhs , or can attend university at a
cost of $5000.
In the second period, Raejean will earn Yhs if
or Yuni , depending on the decision to
attend university or not in period 1. Money
can be borrowed or invested at rate r.
Write down an inequality that illustrates in
which case Raejean will attend university.
Suppose that r = 0.1 (interest rates 10%) and
that Yhs = $500,000. What expected wage
from university Yuni would be required to
convince Raejean to go to university?
%3D
Transcribed Image Text:Raejean is a high school graduate deciding whether to go to university. Post highschool life can be summarized in 2 major periods: In the first period, Raejean can either work for a salary of Yhs , or can attend university at a cost of $5000. In the second period, Raejean will earn Yhs if or Yuni , depending on the decision to attend university or not in period 1. Money can be borrowed or invested at rate r. Write down an inequality that illustrates in which case Raejean will attend university. Suppose that r = 0.1 (interest rates 10%) and that Yhs = $500,000. What expected wage from university Yuni would be required to convince Raejean to go to university? %3D
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