Question: 6-57. (Solving a comprehensive problem) Suppose that you are in the fall of your senior year and are faced with the choice of either getting
6-57. (Solving a comprehensive problem) Suppose that you are in the fall of your senior year and are faced with the choice of either getting a job when you graduate or going to law school. Of course, your choice is not purely financial. However, to make an informed decision you would like to know the financial implications of the two alter- natives. Let's assume that your opportunities are as follows: If you take the "get a job" route, you expect to start off with a salary of $40,000 per r. There is no way to predict what will happen in the future, but your best guess is that your salary will grow at 5 percent per year until you retire in 40 years. .As a law student, you will be paying $25,000 per year in tuition for each of the three years you are in graduate school. However, you can then expect a job with a starting salary of $70,000 per year. Moreover, you expect your salary to gr 7 percent per year until you retire 35 years later. ow by
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