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What is the present value of the bonus

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A competing employer wants to lure you away from the above employers and offers you an alternative incentive. The offer includes a £4500 bonus over five years. This consists of a £400 signing bonus, £650 for year 1, £700 for year 2, £750 for year 3, £800 for year 4 and £1200 for year 5. What is the present value of the bonus today if you anticipate inflation will increase on average by 2% each year?

Reference no: EM132785164

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