Rates of Return

The algebraic method for calculating the rate of return, i, is based on the equality of instantaneously incurred costs, C, and the stream of returns to education, Rt, t = 1, ... , , expressed in terms of present value. That is

C = tRt(1+i)-t
C = tRt(1-i)-t
C = tRt(1+i)-
C = tRt(1-i)-

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