For #3-10: Use Excel to perform the calculations below (by entering equations into cells). (I would not recommend using the commands that are built into Excel involving discount rates.) To avoid making rounding errors, have Excel express your final answer to four decimal places and then round that number to the nearest dollar. Do not enter a dollar sign. For #3-4: Assume a worker graduates from high school at 18 and retires at 65 (65 - 18 = 47). If Jill does not go to college, she could earn $40,000 per year with a high school degree. If Jill goes to college, the direct costs of college are $25,000 per year. There is a 50% chance Jill will attend college for 2 years and then drop out without earning a degree. She could earn $45,000 per year as a college dropout. There is a 50% chance Jill will attend college for 5 years and obtain a college degree. She could earn $70,000 per year as a college graduate. #3) Suppose Jill's discount rate is 4%. What is the present value of Jill's net earnings stream if she only gets only a high school education (and does not attempt college)? Do not discount the first year (age 18 to 19). Start to discount with the second year (age 19 to 20). Round your final answer to the nearest dollar. Do not enter a dollar sign. #4) Suppose Jill's discount rate is 8%. What is the present value of Jill's net earnings stream if she only gets only a high school education (and does not attempt college)? Do not discount the first year (age 18 to 19). Start to discount with the second year (age 19 to 20). Round your final answer to the nearest dollar. Do not enter a dollar sign. For #3-10: Use Excel to perform the calculations below (by entering equations into cells). (I would not recommend using the commands that are built into Excel involving discount rates.) To avoid making rounding errors, have Excel express your final answer to four decimal places and then round that number to the nearest dollar. Do not enter a dollar sign. For #3-4: Assume a worker graduates from high school at 18 and retires at 65 (65 - 18 = 47). If Jill does not go to college, she could earn $40,000 per year with a high school degree. If Jill goes to college, the direct costs of college are $25,000 per year. There is a 50% chance Jill will attend college for 2 years and then drop out without earning a degree. She could earn $45,000 per year as a college dropout. There is a 50% chance Jill will attend college for 5 years and obtain a college degree. She could earn $70,000 per year as a college graduate. #3) Suppose Jill's discount rate is 4%. What is the present value of Jill's net earnings stream if she only gets only a high school education (and does not attempt college)? Do not discount the first year (age 18 to 19). Start to discount with the second year (age 19 to 20). Round your final answer to the nearest dollar. Do not enter a dollar sign. #4) Suppose Jill's discount rate is 8%. What is the present value of Jill's net earnings stream if she only gets only a high school education (and does not attempt college)? Do not discount the first year (age 18 to 19). Start to discount with the second year (age 19 to 20). Round your final answer to the nearest dollar. Do not enter a dollar sign
