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A downtown bank promises its potential employees a $9000 sign-on bonus, an additional bonus of $14000 two years from now, an additional bonus of $18000
A downtown bank promises its potential employees a $9000 sign-on bonus, an additional bonus of $14000 two years from now, an additional bonus of $18000 four years from now, and an additional bonus of $22000 six years from now. Lavanya was hired today but only intends to work for this bank for one year. What is the present value of this bonus payment structure to her? (Assume that money is worth 8% p.a. compounded quarterly) a. $8765.51 b. $7383.13 c. $8314.60 d. $7991.74 e. $9000.00
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