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In section 3.4.1 (page 42) Some Caveats (to the Investing in Education exmalpe) I think it might be good to add another caveat in future editions: that the interest on the student loan is the same as the assumed valuation rate of 4%. It took me a little thinking to get a clear grasp on this, since I all-too-simply accepted that the PV of the student loan was simply the principal originally borrowed. But clearly the loan interest rate makes a difference, since the higher the rate, the lower the economic net worth of the student should end up being. (Think of an exhorbitant loan interest rate 100% and you get the picture.) http://senxzbcvgs.com [url=http://twxthlwwkha.com]twxthlwwkha[/url] [link=http://drtpdptxpw.com]drtpdptxpw[/link]
Posted by: Rheny
Date posted: Nov 10,2015 |
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