Today is 1/1/2021. You have received a new job offer. The compensation package for the next two
Fantastic news! We've Found the answer you've been seeking!
Question:
- Today is 1/1/2021. You have received a new job offer. The compensation package for the next two years is as follows:
Your salary is $200,000 per year. The salary will be paid bi-weekly (assume one year has 52 weeks).
You will receive a one-time $20,000 sign on bonus after six months of joining the company. This bonus will be paid immediately on the completion of the six-month period.
You are offered a performance based bonus, a 15% bonus of the annual salary if you are working actively at the time of the payout of the bonus. This bonus will be paid at the end of each year.
Suppose you will invest all the compensation to a fund that earns an APR of 6%, compounded bi-weekly.
What is the present value on 1/1/2021 for the two-year compensation package?
PLEASE USE EXCEL FUNCTIONS AND SHOW THE CALCULATION
Expert Answer:
Posted Date:
