Investment banking firm-what is the present value

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Reference no: EM131308184

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $8,300 per month for the next three years, or you can have $7,000 per month for the next three years, along with a $37,500 signing bonus today. Assume the interest rate is 5 percent compounded monthly.

1. If you take the first option, $8,300 per month for three years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

2. What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131308184

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