Offered job-different salary arrangements

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Reference no: EM13847654

You have just been offered a job. You have the choice of two different salary arrangements. You can have 45,000 per year for the next two years, payable at the end of each year; or you can have 32,500 per year for the next two years, payable at the end of each year, along with a signing bonus of 25,000 payable today. If the interest rate is 3% compounded monthly, which do you prefer?

Reference no: EM13847654

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