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What is the present value of your bonuses from 2018 to 2047, as of today? (Using C, g, and r, please show how to calculate.)
What is the present value of your bonuses from 2018 to 2047, as of today? (Using C, g, and r, please show how to calculate.) Today is October, 2018 Assume that you got a job on January 1,2018 Your salary is paid monthly at the end of each month. At the end of January 2018, vou received the salary of Every month, your salary will increase at the rate of The first bonus is paid at the end of2018 (i.e., December 31 The amount ofthe bonus in 2018 is the same as 10% ofthe sum ofthe salaries n 2018 (i.e., 10% ofthe 12 months' salaries in 2018). The second bonus is paid at the end of 2019 (i.e., December 31 The amount ofthe bonus in 2019 s the same as 10% ofthe sum ofthe salaries n 2019 (ie, 10% of 12 months' salaries in 2019). The third through 30th bonuses will be paid at the end of year 2020, 2021 and so on (the ast bonus is paid in 2047),. The amount ofeach ofthe third through 30th bonuses is the same as 10% ofthe sum ofthe salaries in that year (ie, 10% of 1 2 months' salaries in each year) The monthly discount rate is: Hint You receive your bonus only at the end of each year (not in every month)
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