Review the discussion of the value of a typical workers human capital in Section 7.5 on pages
Question:
(a) Recompute the present discounted value in the following cases: R = 0.01, R = 0.02, R = 0.04, R = 0.05.
(b) What is the economic intuition for why the present discounted value changes when the interest rate changes?
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a 1 2296693 2 1895037 4 1357577 5 1175754 b When the ...View the full answer
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