88.3k views
3 votes
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,300 per month for the next three years, or you can have $6,000 per month for the next three years, along with a $32,500 signing bonus today. Assume the interest rate is 8 percent compounded monthly. a. If you take the first option, $7,300 per month for three years, what is the present value?

User Ilya Libin
by
5.3k points

1 Answer

4 votes

Answer:

$223,370

Step-by-step explanation:

See attached file

User MHX
by
4.9k points