Hi I have a question in which i also have the answer to, but I cannot work out how the answer was derived. Can you please show me the workings.

Q. 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 first time period), 120,000 for books to get a law degree (during the second period), and her law degree will earn her 620,000 during the remainder of her work life (during the third time period). Paulas time preference for money is associated with a per period interest rate of 20 percent. Approximately what is Paulas present value of obtaining a law degree?

A. 270,500