Investment banking firm-two different salary arrangements

Assignment Help Financial Management

Reference no: EM13848204

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $72,000 per year for the next two years, or you can have $61,000 per year for the next two years, along with a $17,000 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, 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 $

Reference no: EM13848204

Questions Cloud

What is the effective annual rate annual percentage yield : You plan to apply for a loan from Bank of America. The nominal interest rate for this loan is 7.67 percent, compounded daily (with a 365 day per year.) What is the effective annual rate (EAR) annual percentage yield, of this loan?

Business and ethics scenario : Business And Ethics Scenario

About the monthly payment : You want to buy a new sports car from Muscle Motors for $68,000. The contract is in the form of a 72-month annuity due at an APR of 6.75 percent. What will your monthly payment be?

Assignment- race empowemement and cultural comptence : Assignment : Race, Empowemement, and Cultural Comptence 2-4 page paper. Answer the following questions: How does your family and Religious system lead to your idea about your own racial ethnic group as well as the racial and ethnic of others

Investment banking firm-two different salary arrangements : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $72,000 per year for the next two years, or you can have $61,000 per year for the next two years, along wi..

What is present value of the savings : Your company will generate $60,000 in annual revenue each year for the next seven years from a new information database. If the appropriate interest rate is 8.50 percent, what is the present value of the savings?

Invest today in order to have retirement annuity : Hadley wants to retire in 15 years, and he wants to have an annuity of $50,000 a year for 10 years after retirement. Hadley wants to receive the first annuity payment the day he retires. Using an interest rate of 8%, how much must Hadley invest today..

Describe the social or economic justice issue : Describe the social or economic justice issue in the case study, explaining how this issue influences the subject(s) of the case study. Identify at least two strategies you could use to address the issue when you encounter it among clients

Evaluation team with enough information : The aim of this activity is to provide the evaluation team with enough information as to determine if the topic chosen is both appropriate and doable.

User Account

All Pages