Question $11$

$4$ pts

A company offers the following bonus package to its employees. What is the Net Present Value of the package assuming an annual discount rate of $7\mathrm{.}5\%$ and annual compounding? Round to the nearest dollar.

$$90,000$ upfront

An annuity of $$5,500$ to be paid each year from year $1$ through year $10$

An additional $$20,000$ at the end of year $5$