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Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $70,000 per year
Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $70,000 per year for the next two years, or you can have $59,000 per year for the next two years, along with a $15,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. |
If the interest rate is 10 percent compounded monthly, what isthe PV for both the options? |
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