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You ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They ve offered you two different salary arrangements. You can have $
Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $ per month for the next two years, or you can have $ per month for the next two years, along with a $ signing bonus today. Assume the interest rate is percent compounded monthly.
If you take the first option, $ per month for two years, what is the present value?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
What is the present value of the second option?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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