Paula Is Considering Going to Law School

question 25

Multiple Choice

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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Definitions:

Peripheral Body Organs

Organs located outside of the central nervous system, often referring to parts of the body involved in processing and responding to sensory information.

Central Theory

A principle or concept that serves as the foundational or core idea in a particular field of study.

Local Theory

A concept or hypothesis focused on phenomena specific to a particular area or field, lacking broader applicability or generalization.

Peripheral Organs

Peripheral organs refer to the organs and systems located outside of the central nervous system, mainly involved in carrying out the specific functional tasks of the body.