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You have just joined the investment banking firm of Davidson and Smith. They have offered you two different salary arrangements. You can have $ 7
You have just joined the investment banking firm of Davidson and Smith. They have offered you two
different salary arrangements. You can have $ per year for the next three years, or you can have
per year for the next three years along with a $ signing bonus today. The bonus is paid
immediately. If the interest rate is compounded monthly, which do you prefer?
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