Mary has received a job offer from a large investment bank as an assistant to the...

Mary has received a job offer from a large investment bank as an assistant to the vice president. Her base salary will be $60,000 today. Assuming for simplicity that she will receive her first annual salary payment with the appropriate increment one year from the day she begins to work. In addition, she will get an immediate $20,000 bonus for joining the company today. Her salary will grow at 3 percent each year. Each year she will receive a bonus equal to 5 percent of her salary. Mary is expected to work for the next 40 years. What is the present value of the offer if the discount rate is 8 percent? (Note: Double Credit, 2X)

a. $20,000.00

b. $61,800.00

c. $1,122,929.30

d. $1,602,929.95

e. $2,395,101.72

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. HAPPY TO HELP YOU. THANK YOU.

jeff jeffy answered 8 months ago

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