All workers start working for a particular firm when they are 20 years old. The value of

Question:

All workers start working for a particular firm when they are 20 years old. The value of each worker's marginal product is $18 per hour. In order to prevent shirking on the job, a delayed-compensation scheme is imposed. In particular, the wage level at every level of seniority is determined by:
Wage = $10 + (.4 ( Years in the firm).
Suppose also that the is zero for all workers. What will be the mandatory retirement age under the compensation scheme? (Hint: Use a spreadsheet.)
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...