$8.$ Calculating Annuity Values $[$LO$1]$ You want to have $$75,000$ in your savings account $12$ years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays $6\mathrm{.}4$ percent interest, what amount must you deposit each year?

You have just joined an investment banking firm. They have offered you two different salary

arrangements. You can have $$50,000$ per year for the next $3$ years or $$25,000$ per year for the

next $3$ years, along with a $$50,000$ signing bonus today. If the market interest rate is $16\%,$ which

salary do you prefer $($on a present value basis$)?$