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What is the present value of the second option

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Problem: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $6,800 per month for the next two years, or you can have $5,500 per month for the next two years, along with a $30,000 signing bonus today. Assume the interest rate is 7 percent compounded monthly. If you take the first option, $6,800 per month for two years, what is the present value? What is the present value of the second option?

Reference no: EM132444749

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