Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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2. Upon graduating from college this year, you expect to earn $25,000 per year. If you get your
BBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected
to be 5 percent. In today's dollars, how much additional (less) money will you make from getting
your BBA (to the nearest dollar) in your first year?
C -52,462
$8,333
$8,750
C $9,524
Extra credit: What if the salaries were 25,000 and 35000 for 20 years except that they grow with
inflation? How would you decide on the extra year in school?
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Transcribed Image Text:2. Upon graduating from college this year, you expect to earn $25,000 per year. If you get your BBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5 percent. In today's dollars, how much additional (less) money will you make from getting your BBA (to the nearest dollar) in your first year? C -52,462 $8,333 $8,750 C $9,524 Extra credit: What if the salaries were 25,000 and 35000 for 20 years except that they grow with inflation? How would you decide on the extra year in school?
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