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Here is a question on earnings profiles. Consider two individuals, each facing a 45 year horizon at the age of 20. Ivan decides to work immediately and his earnings path takes the following form: earnings = 20,000 + 1,000t - 10t2 , where the t is time, and it takes on values from 1 to 25, reflecting the working lifespan.
(a) In a spreadsheet enter values 1. . . 25 in the first column and then compute the value of earnings in each of the 45 years in the second column using the earnings equation.
(b) John decides to study some more and only earns a part-time salary in his first few years. He hopes that the additional earnings in future years will compensate for that. His function is given by 10,000+2,000t -12t2. Compute his earnings for his lifespan.
(c) Plot the two earnings functions you have computed. During what year does John pass Ivan?
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