1) assume a discount rate is 3%. Now graph the age-earning profiles.

1 Optimal Education Choice 1. Assume a person's labor market active life has three periods after high school graduation (the day the person turns 18 years old) College age (4 years, until their 22nd birthday) . Junior professional age (until their 30th birthday) age (from their 30th ay until retirement People that choose not to go to college work. People that choose to go to college make no money during the four years they are in school. After the three periods, the person retires on her 40th birthday. Furthermore, assume that the out-of-pocket expenditures of each year of college are $90,000, and that the yearly earnings schedule is the following: Professi unior ior ucation HS Graduate College Graduate $50,000 $95,000 S30,000 $45,000