You've just joined the investment-banking firm of JP Morgan. They've offered you two different salary arrangements. The salary will be received monthly. You can have $75,000 per year for the next two years, or you can have $64,000 per year for the next two years, along with a $20,000 signing bonus today.

If the interest rate is 10% compounded monthly, which do you prefer?

Answer rating: 100% (QA)

Lets break this down into present values to see which option is better For the first option of 75000 ... View the full answer