Find the Present Value of Your Future Earnings at Graduation.

In personal risk evaluation and the decision of how much insurance to purchase, one important consideration is the current and future earnings. Try to find the present value of your future earnings at graduation.

$$ Assume retirement at age $62,$ no gaps for unemployment, disability

$$ Use current return on $10-$yr Treasury bonds as discount rate

$$ If you are a graduating senior and have already accepted a job offer upon graduation, use that salary as your starting point. Salary is $$50,000.$

$$ Identify an appropriate salary survey or other source of information about both entry$-$level salaries and typical career progression. Document the assumptions you make to generate a lifetime of earnings.

$$ Identify and document any other assumptions that you need to make.