Problem:
You've just joined the financial consulting firm of Mara, Kelya, and Shawn. They've offered you two different salary arrangements. You can have $84,000 per year for the next two years, or you can have $73,000 per year for the next two years, along with a $29,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.
Required:
Question: If the interest rate is 10 percent compounded monthly, what is the PV for both the options?
Note: Please explain comprehensively and give step by step solution.