You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've
offered you two different salary arrangements. You can have $79,000 per year for the
next two years, or you can have $68,000 per year for the next two years, along with a
$24,000 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 componded monthly, what is the PV for both the
options? (Do not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.)
Option 1
Option 2
PV
$
$