Joe is considering becoming a certified accountant, which costs $10,000. There is no discounting (r = 0). Joe faces the following labor market options:

Earnings without certification: $50,000/yea; Earnings with certification: $75,000/year

a) If this were a two-period model where Joe can become certified (or work) in period 1 and work in period 2, would he become certified?

b). Still assuming no discounting, suppose there were 4 periods. Again, Joe can become certified (or work) in period 1 and then work in periods 2-4. Now would he get the degree?