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Expected income: 850 000 per year before tax (Assume for simplicity that the full amount is paid one year from today. ) Tax rate: 42%

Expected income: 850 000 per year before tax

(Assume for simplicity that the full amount is paid one year from today. )

Tax rate: 42%

Working time: 40 years

Wage growth: 3% annually

The required rate of return: 5% annually

Necessary consumption: 60% of income after tax

How much is this person's human capital from today until retirement (40 years)?

(Make your own assumptions if anything appears unclear)

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