Question
Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $74,000 per year
Youve just joined the investment banking firm of Dewey, Cheatum, and Howe. Theyve offered you two different salary arrangements. You can have $74,000 per year for the next two years, or you can have $63,000 per year for the next two years, along with a $19,000 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 8 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16) Include step by step how you got the answer! |
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