(d) If Jim's fellowship pays an annual stipend of $15,000 (but only when he attends school), how much will he be paid before ending up with a degree?

s. An employee who is now 55 years old plans to retire at the age of 62 but does not rule out the possibility of quitting earlier. At the end of each year, he weighs his options (and state of mind regarding work). The probability of quitting after one year is only .1 but seems to increase by approximately .01 with each additional year.

(a) Express the problem as a Markov chain.