A worker who is close to retirement is choosing between two possible paths for the rest of their career. One possibility is to continue working in their current job, in which case they will earn $50,000 per year this year and each of the subsequent 4 years. Alternatively, they could not work this year but instead enroll in a one-year intensive coding program that costs $20,000, in which case they would earn $70,000 per year each of the four years after this one. Let i denote the nominal annual interest rate.

a. Use the concept of present value to explain how the worker should go about deciding which choice is better financially
b. If the interest rate is 5%, which choice will make the worker better off financially? What if the interest rate is 10%?

Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today

Responsible for setting the goals and planning for the future as well as leading and controlling the work of others. out the decisions of top management. often responsible for various departments such as the production, marketing, and accounting departments. process or function of planning organizing leading and controlling. the resources arranged in an orderly and functional way to accomplish goals and objectives. the company on track and making sure goals are met. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. act or process of creating goals and objectives as well as the strategies to meet them. for the daily operations of a business. examples of this are supervisors, office managers, and crew leaders. how the firm is structured and who is in charge of whom. direction and vision

What two things do you consider when evaluating the time value of money