A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
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A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
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