1. You're 20 years old and trying to decide which career path to take based on the future expected streams of income. Occupation A has you earning $15,000 per year for 5 years, then $25,000 per year for the next 30 years. Occupation B has you earning only $1000 per year for four years, then $10,000 per year for 6 years, and finally $50,000 per year for the next 25 years. You plan to retire when you are 55.

A) Write out a formula to calculate the present value of each of these income streams, assuming the interest rate is "r". (Hint: you don't have to write out all 35 terms you could use "..." when it is obvious what the next term is in sequence.)

B)What occupation would be better if the interest rate was zero? If it was extremely high?