You are getting paid $8,000 a month, at the end of each working month. What is the
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Question:
You are getting paid $8,000 a month, at the end of each working month.
What is the present value of a year's salary knowing that the annual interest rate is 7% ? Your employer is also offering to pay you $4,000 bi-monthly (i.e. twice a month).
What-are the present-values of a year of salary paid in these two different ways?
Which one do you prefer if you want to maximize the present value of your payments? Round your final answers to the nearest cent
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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