6. Debra has been offered a 20-year job at a starting salary of $70,000 and guaranteed annual raises of 4 percent starting year2. Assume that all salaries are paid at the end of the year. Debra's tax rate is 23%. Taking personal taxes into account, what is the current value of this offer at a discount rate of 8 percent?

(a) $714.038.17

(b) $927.322.30

(c) $357.019.09

(d) $463.661.15

(e) $213.284.13

7. You want to take a 20-year mortgage of $500,000 with a 7.5 percent APR paid monthly. You plan to pay a lump sum of $150,000 (i.e., a balloon payment) together with your last periodic payment. What would your periodic payment be?

(a) $3,798.52

(b) $3,757.08

(c) $4.087.17

(d) $4.027.97

(e) $2083.33

8. You plan to invest in a growing perpetuity that pays $500 a year at the end of each year. The annual discount rate is 8% and the growth rate is 3%. Due to regulatory requirements, the investment will be launched two years from now. What is the value of this perpetuity today?

(a) $10,000

(b) $9070.30

(c) $6250.00

(d) $5358.37

(e) $8573.39

Faiste of 4 percent sterting joor 2 , Assume thay all sularies are gaid at the ed of the year. Dehea's. tax rate is 23%. Tilding perwenal swes into secoent, what in the current value of this offer at an diveount rate ers pelcent? (i) 5714,0317 (b) $927,32230 (c) $757.01900 (d) 4463,661.15 (e) 5213,224.13 7. You wate ta cake a 30 -year troitgage of 5500,000 with a 75 pereent APR paid monthly. You plan to pay a lume sier of 5150,000 (Le., a bulbon payment together with your last periotic proment. What nowld your periodic peyinent be? (a) 53,795.52. (b) 31,757.08 (c) 54057,17 (d) 44,027.97 (c) \$2053.33 8. You plan to invese in a grousing perpetuid that pays $500 a year at the cod of each yeat. The annuse discount nite is 8% and the growth rate is 3%. Due to rezulatory requirctients, the itrvertment will be lemehed two years from now, What is the valoe of this perpeluity today? (a) 510,000 (b) $9070.30 (c) 56250.00 (d) $5358.37 (c) 58573,39