The College Investment OL--H-H W P COL COL 十.+ COL (1+r)(1+r)2(1+r)3(1+r)4(1+r) +r) PVe=wue t W HS HS HS 十.+ (1+r)(1+r) (1+r) Effective yield of college education is the r when POor= py This is also called internal rate of returnThe College Investment 2 3 4 5 4 6 (1 ) ... (1 ) (1 ) (1 ) (1 ) (1 ) r W r W r W r H r H r H PV H COL COL COL COL + + + + + + + + − + − + = − − 2 46 (1 ) ... (1 ) (1 ) r W r W r W PV W HS HS HS HS HS + + + + + + = + Effective yield of college education is the r when This is also called “internal rate of return”. PVCOL = PVHS