You have recently finished your undergraduate degree and have two outstanding offers: (1) Admission into a...
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You have recently finished your undergraduate degree and have two outstanding offers: (1) Admission into a one-year graduate program that comes with an assistantship comprised of a one-time tuition waiver of $30,000 at the beginning of the year plus an end-of-month stipend for 12 months. (2) Entrance into Google's management rotational program that comes with a one-year, part-time internship with a wage of $3,000 per month paid at the end of the month. What monthly stipend would make you indifferent to these two offers that is make the present values of the two offers equal - if the APR is 7% compounded monthly? You have recently finished your undergraduate degree and have two outstanding offers: (1) Admission into a one-year graduate program that comes with an assistantship comprised of a one-time tuition waiver of $30,000 at the beginning of the year plus an end-of-month stipend for 12 months. (2) Entrance into Google's management rotational program that comes with a one-year, part-time internship with a wage of $3,000 per month paid at the end of the month. What monthly stipend would make you indifferent to these two offers that is make the present values of the two offers equal - if the APR is 7% compounded monthly?
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