You are a senior graduating soon.In 2010 the average annual wage was about $62,000.Suppose you graduate when you are 22 and will retire when you are 67 (normal in the United States,about 45 years of work).Assuming your wages don't grow over time,ignoring inflation,and assuming we discount the future at 4.5 percent,what would be present value of your human capital? If we discount the future at 3 percent what would be your present value lifetime income? Intuitively explain the difference.

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The Answer of You are a senior graduating soon.In 2010 the average annual wage was about $62,000.Suppose you graduate when you are 22 and will retire when you are 67 (normal in the United States,about 45 years of work).Assuming your wages don't grow over time,ignoring inflation,and assuming we discount the future at 4.5 percent,what would be present value of your human capital? If we discount the future at 3 percent what would be your present value lifetime income? Intuitively explain the difference.

You Are a Senior Graduating Soon