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3. What is the present value of the salary increase she can enjoy for 40 years after graduate school? (Hint: Again the same formula from
3. What is the present value of the salary increase she can enjoy for 40 years after graduate school? (Hint: Again the same formula from Problem 1 can be used to find the present value of increase in earnings with new values of c and t. But you need to divide the resulting "present value" by (1.04) because the increase in earnings does not begin until two years from now when Maggie is done with graduate school.) a. $158,234 b. $165,421 C. $177,876 d. $182,995
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