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    Present value of salary arrangement

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    You have just joined a regional investment banking firm. They have offered you two different salary arrangements. You can have $81,000 per year for the next 3 years or $60,000 per year for the next 3 years, along with a $50,000 signing bonus today. If the market interest rate is 16%, what is the present value of the best salary arrangement?

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    Solution Preview

    You have just joined a regional investment banking firm. They have offered you two different salary arrangements. You can have $81,000 per year for the next 3 years or $60,000 per year for the next 3 years, along with a $50,000 signing bonus today. If the market interest rate is 16%, what is the present value of the best salary arrangement?
    Option ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the present value of the best salary arrangement.

    $2.19

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