You are now twenty$-$three years old and have just finished university. You have two job offers. The first offer

$($Job A$)$ is with a municipal government $($i$.$e$.,$ low risk$).$ Your salary will start at $$40,000$ per year and will grow

at the rate of $4\%$ p$.$a$.$ If you take this job, you will retire at age sixty$-$five. The second offer $($Job B$)$ is with a

private company and involves a higher risk. Your salary will start at $$55,000$ per year and will grow at the rate of

$7\%$ p$.$a$.$ If you take this job, you want to retire when you reach age sixty. Suppose that you believe that the

valuation rates appropriate for the two jobs are $2\%$ p$.$a$.,$ and $5\mathrm{.}5\%$ p$.$a$.$ respectively $($both are annual$-$

compounding rates$).$ Suppose also that your salary is paid at the end of the year. Strictly on financial terms,

which job will you choose?