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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 $ 7 5
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've
offered you two different salary arrangements. You can have $ per year for the
next two years, or you can have $ per year for the next two years, along with a
$ 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 percent compounded monthly, what is the PV for both the
options? Do not round intermediate calculations and round your final answers to
decimal places. eg
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