You just joined the investment banking firm of Dewey Cheatham and Howe. They’ve offered you two different salary arrangements. You can have$6100 per month for the next two years or you can have $5100 per month for the next two years along with the $25,000 signing bonus today. If the interest rate is 7% compounded monthly. Which do you prefer?
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- You just joined the investment banking firm of Dewey Cheatham and Howe. They’ve offered you two different salary arrangements. You can have$6100 per month for the next two years or you can have $5100 per month for the next two years along with the $25,000 signing bonus today. If the interest rate is 7% compounded monthly. Which do you prefer?
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- You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,900 per month for the next three years, or you can have $6,600 per month for the next three years, along with a $35,500 signing bonus today. Assume the interest rate is 5 percent compounded monthly. a. If you take the first option, $7,900 per month for three years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) A value of first option B Value of Second OptionYou’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $8,500 per month for the next three years, or you can have $7,200 per month for the next three years, along with a $38,500 signing bonus today. Assume the interest rate is 8 percent compounded monthly. a. If you take the first option, $8,500 per month for three years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of the second option? (You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $66,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $11,000 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 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $______ Option 2 $_______
- You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They'veoffered you two different salary arrangements. You can have $7,000 per month for thenext two years, or you can have $5,700 per month for the next two years, along with a$31,000 signing bonus today. Assume the interest rate is 6 percent compoundedmonthly.a. If you take the first option, $7,000 per month for two years, what is the present value?(Do not round intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)b. What is the present value of the second option? (Do not round intermediatecalculations and round your answer to 2 decimal places, e.g., 32.16.)You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $79,000 per year for the next two years, or you can have $68,000 per year for the next two years, along with a $24,000 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 9 percent compounded monthly, what is the value today of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $70,000 per year for the next two years, or you can have $59,000 per year for the next two years, along with a $15,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 10 percent compounded monthly, what is the PV for both the options? PV Option 1$ Option 2$
- You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $77,000 per year for the next two years, or you can have $66,000 per year for the next two years, along with a $22,000 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 value today of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Option 1 Option 2You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements: Arrangement 1: you can have $75,000 per year for the next two years, or Arrangement 2: you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. The interest rate is 10 percent compounded monthly. a) What is the present value of Arrangement 1? b) What is the present value of Arrangement 2? c) Which arrangement do you preferA. You have just joined a new pharmaceutical company PHARMA+. They've offered you two different salary packages. You can have $40,000 at the end of each year for the next two years, or you can have $10,000 at the end of each six month period for the next three years along with a $25,000 signing bonus today. If the interest rate available to you is 15% compounded annually, which package do you prefer? (Draw the time line).
- Q4. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $95,000 per year for the next two years, or you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?You have just entered an MBA program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment. You intend to charge $1000 per month on the card for the next 21 months. The card carries a monthly interest rate of 1%. How much money will you owe on the card 22 months from now, when you receive your first statement post-graduation?a) You are considering moving your money to a new bank offering a one-year GIC that pays an 8% APR with monthly compounding. Your current bank offers to match the rate you have been offered by the rival. The account at your bank would pay interest every six months. What is the APR they should offer you to convince you to stay?