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Assume you are being offered a compensation package that consists of $ 5 4 7 to be paid immediately, $ 7 4 7 to be

Assume you are being offered a compensation package that consists of $547 to be paid immediately, $747 to be paid in exactly one year, plus 5 years of monthly payments of $30, with the first monthly payment to be made exactly 16 months from now. If the discount rate embedded in the settlement negotiations is 12 percent APR, compounded monthly, what is the present value (i.e., the value as of today) of the settlement agreement?

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