Paula is considering going to law school if she does she


Paula is considering going to law school. If she does, she will spend $60,000 on tuition and books to get a college education (during the first time period), $120,000 on tuition and books to get a law degree (during the second time period), and her law degree will earn her $620,000 during the remainder of her work-life (during the third time period). Paula's time preference for money is associated with a per-period interest rate of 20 percent. Approximately what is Paula's present value of obtaining a law degree?

A. $100,100

B. $210,400

C. $270,500

D. $440,000

E. $621,900

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Business Economics: Paula is considering going to law school if she does she
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