What is the present value of the second option

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Reference no: EM13879478

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.

Requirement 1: If you take the first option, $8,300 per month for three years, what is the present value? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $

Requirement 2: What is the present value of the second option? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Present value $

Reference no: EM13879478

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