In 2012, the Clarkson Community Schools in Clarkson,Michigan paid its starting teachers $38,087 employees with a bachelor’s degreeand $41,802 with a master’s degree. (For simplicity, assume that these...

In 2012, the Clarkson Community Schools in Clarkson,Michigan paid its starting teachers $38,087 employees with a bachelor’s degreeand $41,802 with a master’s degree. (For simplicity, assume that these salariesstay constant and do not increase with experience.) Suppose you know that youwant to work for this school district and want to maximize your life-timeearnings. To get a master’s degree takes one extra year of schooling and costs$20,000. Should you get the master’s if you cannot work during that year?Should you get your master’s degree if you can work while studying for yourmaster’s? In your calculations, assume that you’ll work for 40 years and thenretire and consider interest rates of 3% and 10%