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Received signing bonuses from their accounting firms

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Kristi Collmer and Ray Bergeron each received signing bonuses from their accounting firms today. Kristi received $5,000 immediately. Ray will receive $1,500 at the end of each year for the next 4 years. Assuming a 10% interest rate, who got the better deal and by how much (in today’s dollars)?

A. Kristi, by $245

B. Ray, by $1,400

C. Kristi, by $1,002

D. Ray, by $1,962

E. Ray, by $1,000

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It will be calculated as follows: Present Value of bonus received by Kristi

Reference no: EM131211005

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