Imagine you've embarked on a new career with the following income structure: During the first 3 months, which serve as a training phase, you will receive $2,000 at the end of the first month, $3,000 at the end of the second month, and $4,000 at the end of the third month. After completing the training phase, your monthly income will be a fixed $4,500 for the rest of your career. Assuming a 6% interest rate, what is the present value of your total income in this role? a. $67,322.3 b. $70,886.7 c. $75,443.3 d. $79,701.1 e. $83,435.8
Imagine you've embarked on a new career with the following income structure: During the first 3 months, which serve as a training phase, you will receive $2,000 at the end of the first month, $3,000 at the end of the second month, and $4,000 at the end of the third month. After completing the training phase, your monthly income will be a fixed $4,500 for the rest of your career. Assuming a 6% interest rate, what is the present value of your total income in this role? a. $67,322.3 b. $70,886.7 c. $75,443.3 d. $79,701.1 e. $83,435.8
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Imagine you've embarked on a new career with the following income structure: During the first 3 months, which serve as a training phase, you will receive $2,000 at the end of the first month, $3,000 at the end of the second month, and $4,000 at the end of the third month. After completing the training phase, your monthly income will be a fixed $4,500 for the rest of your career. Assuming a 6% interest rate, what is the present value of your total income in this role?
a. $67,322.3
b. $70,886.7
c. $75,443.3
d. $79,701.1
e. $83,435.8
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