ECON 2560 Chapter Notes -Problem Set, Cash Flow

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This problem set is to be used in preparation for the quiz in class on thursday, january 24. The problem used in the quiz will be very similar to the problems on this problem set. Answers for these problems will not be posted. These problems are based on chapter 5: you are wondering whether going to university would be worthwhile. You figure that the total cost of going to university for four years, including lost wages, is ,000 per year. However, you feel that if you get a university degree, your wages will be ,000 per year higher than if you did not get the degree. You expect to work for 50 years after graduation. Your first tuition payment is due immediately and then there will be 3 more payments at the start of each of the next 3 years. Your first paycheck will come at the end of your first year of work (5 years from today).

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