Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your first job out of college will pay you $82,000 in year 1 (exactly one year from today). You estimate that your salary will grow

Your first job out of college will pay you $82,000 in year 1 (exactly one year from today). You estimate that your salary will grow at 4% per year. You plan to retire in 43 years (you'll receive 43 years of salary). If the applicable discount rate is 7%, what is the present value of these future earnings today? Round to the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course in Quantitative Finance

Authors: Thomas Mazzoni

1st edition

9781108411431, 978-1108419574

More Books

Students also viewed these Finance questions

Question

Is how things are said consistent with what is said?

Answered: 1 week ago

Question

3. What does the term emotional intelligence mean to yon?

Answered: 1 week ago

Question

What is topology? Explain with examples

Answered: 1 week ago

Question

What is linear transformation? Define with example

Answered: 1 week ago

Question

6. What is moral hazard? How do banks reduce this problem? LOP8

Answered: 1 week ago