You are currently twenty years old, and will spend two more years in school. Once you graduate, you will start working with a starting salary of w22 = $50,000 per year. Your salary will grow at the (nominal) rate of 5% per year until you retire at age sixty-five.

What is the current value of your human capital H20, assuming that the (nominal) valuation rate is v = 6% p.a., annual compounding, and that the salary is paid at the end of each year?