Question
Alec Rodrigues was just hired as a baseball coach with the Long Island Mets on a two-year contract. The team have offered Alec two different
Alec Rodrigues was just hired as a baseball coach with the Long Island Mets on a two-year contract. The team have offered Alec two different salary options. Under Option A, he will receive $81,000 in salary per year for the next two years. Under Option B, he will get $70,000 in salary per year for the next two years and a welcome bonus today of $26,000. The salary is paid in equal amounts at the end of each month and a welcome bonus will be paid now. |
Compute the value of each salary option if the interest rate is 10 percent compounded on a monthly basis? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) OPTION 1= ??? OPTION 2= ??? |
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