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How pv and fv work

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Reference no: EM132581903

You just learned about the Time Value of Money concept, and the difference between Present Value and Future Value. This knowledge will help you decide what to do about a job offer you just received.

You were asked to select between two options:

  1. A salary of $60,000 a year with the opportunity for promotions every three years (promotions include a pay increase of 3-5%).
  2. A salary of $50,000 a year with a salary increase of $50,000 if you remain in the company for 5 years and met performance expectations on a yearly basis.

Question 1: Note: your answer must reflect an understanding of how PV and FV work. Assume that present interest rates remain at the same level for at least a period of two years. Make sure you explain any other assumptions you made in order to reach your decision.

Reference no: EM132581903

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