You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $6,900 per month for the next three years, or you can have $5,600 per month for the next three years, along with a $30,500 signing bonus today. Assume the interest rate is 8 percent compounded monthly.
If you take the first option, $6,900 per month for three years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $
What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Present value $