1. Maria lives for three periods. He is currently considering three alternative education-work options. He can start working immediately, earning $95,200 in period 1, $104,160 in period 2, and $100,800 in period 3. Alternatively, he can spend $56,000 to attend college in period 1 and then earns $190,400 in periods 2 and 3. Finally, he can receive a doctorate degree in period 2 after completing his college education in period 1. He will spend $56,000 to attend college in period 1 but graduate school will cost him nothing as his expenses on tuition and books will be covered by a research assistanceship. After receiving his doctorate, he will become a professor in a business school and earn $392,000 in period 3. (17 points) a. Give a plausible economic explanation as to why his earnings fluctuate as they do if he starts work immediately in the first option. b. Suppose Maria's discount rate is 5%. What education-work path would you expect Maria to select? Why? Show all necessary work. c. Suppose Maria's discount rate is 10%. What education-work path would you expect Maria to select? Why? Show all necessary work. d. Explain what the discount rate represents in this type of