You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $ 66 comma 000 every 7 years, starting 7 years from now. What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 5 % (EAR)? (Note : Be careful not to round any intermediate steps less than six decimal places.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You have been offered a job with
an unusual bonus structure. As
long as you stay with the firm,
you will get an extra $ 66 comma
000 every 7 years, starting 7
years from now. What is the
present value of this incentive if
you plan to work for the
company for 42 years and the
interest rate is 5% (EAR)? (Note
: Be careful not to round any
intermediate steps less than six
decimal places.)
Transcribed Image Text:You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $ 66 comma 000 every 7 years, starting 7 years from now. What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 5% (EAR)? (Note : Be careful not to round any intermediate steps less than six decimal places.)
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