Question: Jack Ferguson has signed a three-year contract to work for a computer software company. He expects to receive a base salary of $5,000 a month

Jack Ferguson has signed a three-year contract to work for a computer software company. He expects to receive a base salary of $5,000 a month and a bonus of $10,000 at year-end. All payments are made at the end of periods. What is the present value of the contract if the stated annual interest rate, compounded monthly, is 12 percent?

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