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 two years, or you can have $4,800 per month for the next two years, along with a $35,000 signing bonus today. Assume the interest rate is 9 percent compounded monthly.
Requirement 1:
If you take the first option, $6,900 per month for two years, what is the present value? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Present value $
Requirement 2:
What is the present value of the second option?