Question: Paige works on a dairy farm, earning $18,000 per year at the end of each year. Her dream is to be a veterinarian. If she goes to state school, she can become a vet after eight years of study. She would have to pay $17,000 at the beginning of each of the eight years in tuition. After graduation, she could make $65,000 per year (at the end of each year) as a vet for the following 22 years. If she doesn't go to vet school, she will continue in her current job for the next 30 years. Her discount rate is 1%. What does her discount rate say about her personality? Should she go to vet school? You may evaluate her options separately or jointly.
Bonus: What annual interest is truly equivalent to Ernesto's.