Question
a. You've just been hired at a new job. You expect to work there for 4 years. Your boss offers you a hiring bonus of
a. You've just been hired at a new job. You expect to work there for 4 years. Your boss offers you a hiring bonus of either $2,739 today, or an additional $22 per month, starting next month, on your salary.
If your investments earn 2.75% APR (compounded monthly), how much would you gain or lose by taking the cash-bonus today?
b.
You purchase an antique car today for $52,394
You expect the price of the car to rise by 4% per year for the next 6 years.
What do you expect the price of the car to be in year 6?
If you would lose money, indicate your answer with a negative number.
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