Question
Your base salary will be $95,000 per year and the first year's annual salary will be received one year from the day you start working.
Your base salary will be $95,000 per year and the first year's annual salary will be received one year from the day you start working.
You receive a bonus immediately of $12,500.
Your salary will grow 4 percent per year and you will receive a bonus of 10 percent of your salary.
You expect to work for 30 years.
Your discount rate is 10 percent.
What is the present value of your offer?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
