You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,400 per month for the next two years, or you can have $6,100 per month for the next two years, along with a $33,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly.
a) Value of the first option:-
=PV(rate,nper,pmt)
=PV(6%/12,2*12,-7400)
=166965.21
b) Value of the second option:-
=PV(6%/12,2*12,-6100)+33000
=170633.48
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two...
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $7,400 per month for the next two years, or you can have $6,100 per month for the next two years, along with a $33,000 signing bonus today. Assume the interest rate is 6 percent compounded monthly a. If you take the first option, $7,400 per month for two years, what is the present value? (Do not round intermediate...
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $78,000 per year for the next two years, or you can have $67,000 per year for the next two years, along with a $23,000 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 is the...
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value: 2.00 points You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $30,000 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 9 percent compounded monthly,...
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