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You have just joined the investment banking firm. They have offered you two different salary arrangements. You can have $40,000 per year for the next

You have just joined the investment banking firm. They have offered you two different salary arrangements. You can have $40,000 per year for the next two years, or you can have $20,000 per year for the next two years, along with a $30,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 16% compounded monthly, which do you prefer?

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