You are offered a job that will pay you 60000 a year You anticipate that your salary

Fantastic news! We've Found the answer you've been seeking!

Question:

You are offered a job that will pay you 60000 a year You anticipate that your salary will increase by 5 a year until retirement in 40 years Given an interest rate of 8 what is the present value of your lifetime salary

Related Book For answer-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Posted Date: Jan 05, 2021 08:58 PM

See More Questions

Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to...
Given the following cash inflow, what is the present value of this cash flow at 5%, 10%, and 25% discount rates? Year 1: ..... $3,000 Year 2: ..... $5,000 Years 3 through 7: . $0 Year 8: .... $25,000
What is the present value and when is it used?
The following items were shown on the balance sheet of Herman Corporation on December 31, 2010: Stockholders Equity Paid-In Capital Capital Stock Common stock , $5 par value, 360,000 shares...
In which of the eight archetypes does Cowgirl Enterprises fall? Could it fall into more than one? Briefly explain your answer. Are there other ways that Donna could have started Cowgirl Enterprises?...
The graph of f is given. (a) Find each limit, or explain why it does not exist. (b) State the equations of the horizontal asymptotes. (c) State the equations of the vertical asymptotes. (d) At what...
Find the free-vibration response of a rectangular membrane of sides $a$ and $b$ subject to the following initial conditions: \[\begin{aligned}& w(x, y, 0)=w_{0} \sin \frac{\pi x}{a} \sin...
Maggie Moylan Motorcycle Corp. uses kambans to support its transmission assembly line. Determine the size of the kanban for the mainshaft assembly and the number of kanbans needed. Setup cost = $20...
where company shows it uneanedd revuene and how it is decribedd in the footnotes?
New Horizons Co. is a high-tech firm whose owner does not have the required management expertise to run the firm. The owner wants to hire a manager with the required expertise. The continued success...
DESA BHD is listed company engaged in providing brokerage services in Kuala Lumpur and Bangkok. The External Auditor has raised several issues that need to be addressed by DESA BHD as follows: a)...
Which is bigger, the exchange-traded market or the OTC market?
Explain how hedging using futures can lead to cash-flow problems such as those experienced by Metallgesellschaft.
How do the margin requirements for a small retail trader differ from those for a member of the exchange clearinghouse?
What is the difference between the clean price and the dirty price of a bond?
How is par yield defined?
Kingsville Brewery Co-Operative experienced the following activity in its Initial Brewing Department during December. Ingredients (Materials) are added at the beginning of the brewing process. Units:...
Problem 2. (0.6 points, 0.2 points for each question) (a) A company turns its inventory 2 times a month. Its months-of-supply = Its days-of-supply = Please show your analysis below: _months. days. (1...
The inflation rate is 10 percent, and the central bank is considering slowing the rate of money growth to reduce inflation to 5 percent. Economist Milton believes that expectations of inflation...
Draw a supply-and-demand diagram to explain the effect of a negative externality that occurs as a result of a firms production process.
An early freeze in California sours the lemon crop. Explain what happens to consumer surplus in the market for lemons. Explain what happens to consumer surplus in the market for lemonade. Illustrate...
Referring to Table 7.1 in the text: a. Calculate the $R^{2}$ for each of the regressions. b. Calculate the homoskedasticity-only $F$-statistic for testing $\beta_{3}=\beta_{4}=0$ in the...
A Cobb-Douglas production function relates production $(Q)$ to factors of production-capital $(K)$, labor $(L)$, and raw materials $(M)$ - and an error term $u$ using the equation...
Suppose the regression in Equation (8.30) is estimated using LoSTR and $L o E L$ in place of HiSTR and HiEL, where LoSTR $=1-H i S T R$ is an indicator for a low-class-size district and \(L o E...

You are offered a job that will pay you 60000 a year You anticipate that your salary

Question:

Expert Answer:

The PV of a growing annuity is given by PVga P11g1inig ... View the full answer

Principles of economics

Students also viewed these accounting questions