Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $50,000. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $10,000 bonus for joining the company. His salary will grow at 4.4 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 25 years. What is the present value of the offer if the discount rate is 9 percent? Using the growing annuity formula I did: r = .044 r = .09 C = 50000 bonus: 10,000 50000*.1 = 5000 50000/(.09/.044) (1-(1+.044)/(1+.09))^25 + 10000 = PV = 727,075.38 I am not sure if I am correct?