What is the pv for both the options

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Reference no: EM132048507

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $65,000 per year for the next two years, or you can have $54,000 per year for the next two years, along with a $10,000 signing bonus today.

The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the PV for both the options?

option 1 PV = ?

option 2 PV = ?

Reference no: EM132048507

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