Debbie is about to choose a career path. She has narrowed her options to two alternatives. She can

become either a marine biologist or a concert pianist. Debbie lives two periods. In the first, she gets an

education. In the second, she works in the labor market. If Debbie becomes a marine biologist, she will

spend $15,000 on educationin the first period and earn $472,000 in the second period. If she becomes

a concert pianist, she will spend $40,000 on education in the first period and then earn $500,000 in the

second period. Suppose Debbie can lend and borrow money at a 5 percent rate of interest between the

two periods. Which career will she pursue? What if she can lend and borrow money at a 15 percent rate

of interest? Describe in general terms how Debbies decision depends on the interest rate.