5. Paula is considering going to law school. If she does, she will spend $60,000 on tuition and books to get a college education (during the rst time period), $120,000 on tuition and books to get a law degree (during the second time period), and her law degree will earn her $500,000 during the remainder of her work-life (during the third time period). Paula's time preference for money (her discount rate) is 20 percent. a. What is Paula's present value of obtaining a law degree? b. Suppose that Paula is also considering an alternative career path, in which she obtains a college education in the rst period (with the same costs as before) and enters the work force immediately as a marketing analyst. She earns $100,000 in the second period and $200,000 in the third period under this option. Will she choose to become a lawyer or a marketing analyst? Show your work. c. If Paula's discount rate is 5 percent, will this change her decision? Show your work. 6. Carl's wage-schooling locus is given by: Years of Schooling Earnin s 9 $18,500 10 $20,350 11 $22,000 12 $23,100 13 $23,900 14 $24,000 Derive his marginal rate of return schedule. When will Carl quit school if his discount rate is 4 percent? What if the discount rate is 9 percent