"Question #$3$: It is January $1$st$,2022,$ you just turned $31-$years$-$old. You are a high$-$school

$($only$)$ graduate working only $40$ hours per week $--$ playing video games for the remainder

of the week $--$ and earning $$15$ per hour. Your wage is paid annually at the end of each

year $($assume $52$ weeks in each year$).$ It is a relatively safe and secure job $($immune to

viruses$)$ and you plan to work at this job for the next $30$ years of your life, after which you

will retire at the end of age $60$; obviously to play video games for the rest of your life. Also,

assume that your salary $($i$.$e$.$ minimum wage$)$ increases by $2\%$ wage inflation, fixed until

your retirement. Notice that it is regular $($not delayed$)$ growth. For this question, ignore

income taxes, CPP$,$ EI$,$ and vacation entitlements. $($Yes$,$ totally unrealistic, but we must

start somewhere.$)$

Part A: You are considering enrolling in a full$-$time program of study $($BBA degree, college

diploma, extended technical certificate, etc.$)$ that will require you to stop working for $4$ full$-$

time years and pay tuition of $$30,000$ per year for each of those $4$ years $($at the end of

each year$).$ Right after graduation you come back to your previous job. The benefit of this

big investment in your human capital is that when you graduate at the end of age $34,$ your

wage would be $$45$ per hour. What is the Internal Rate of Return $($IRR$)$ from this

investment in your human capital? Note that I would like to see $($only$)$ two digits in your

answer, since anything beyond that is meaningless given all the assumptions you will

have to make. Please state very clearly any$-$and$-$all further assumptions you are making

in answering this question.

Part B: What rate does IRR converge to$?$ In other words, what is the maximum IRR that

you can get by working more years and retiring later?"