r employer has promised to give you a $5,000 bonus after you have been working for him for 5 years. What is the present value of this bonus if the proper discount rate is 8%
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Your employer has promised to give you a $5,000 bonus after you have been working for him for 5 years. What is the
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- Ms. Adams has received a job offer as an administrative assistant. Her base salary will be $50,000. She will receive her first annual salary payment one year from the day she begins to work. In addition, she will get an immediate $10,000 bonus for joining the company. Her salary will grow at 4 percent each year and each year she will receive a bonus equal to 10% of her salary. Ms. Adams is expected to work for 30 years. What is the present value of the offer if the appropriate discount rate is 10% (EAR)?You are considering a job that offers a starting bonus of $2,500, paid immediately, and an annual salary of $44,000, $47,000, and $50,000 for each of the next 3 years, respectively. One year the offer expires, you will receive a gratuity of $20,000. The annual salary is paid at the end of each year. What is this offer worth today at a discount rate of 5.6 percent?Your new job offers a savings plan that pays 0.75 percent in interest each month. You can't participate in the plan, however, until you have 5 years with the company. At that time you will start saving $100 a month for the next 28 years. How much will you have in this savings account in 33 years? Round your answer to two decimals. $ Another perk of your new job is that, after 5 years with the company, you will also get an increase of $125 in your monthly salary. Assume you would stay with the company for 28 more years after getting the salary increase, and that you discount at 0.75 percent each month. What is this salary increase worth to you today? Round your answer to two decimals.
- You are hetting paid $12,000 a month, at the end of each wokeing month. What is the present value of a year's salary knowing that the annual interest rate is 9%. You employer is also offering to pay you $6,000 bi month(twice a month). What are the present values of a year salary paid in these two different way? which one do you prefer if you want to maximize the present value of your payments.You are getting paid $8,000 a month, at the end of each working month. What is the present value of a year's salary knowing that the annual interest rate is 7% ? Your employer is also offering to pay you $4,000 bi-monthly (i.e. twice a month). What-are the present-values of a year of salary paid in these two different ways? Which one do you prefer if you want to maximize the present value of your payments? Round your final answers to the nearest centMaddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $6,000. With an annual discount rate of 8%, calculate the value today of receiving $6,000 in five years.
- A corporation promises to pay you $4 a year for 20 years and $100 after 20 years. What is the maximum amount you would pay for the security if you wanted to earn 8 percent?Suppose you are paid $2400 per month and your employer's 401(k) matches your contributions by 50% up to a maximum of 10% of your pay. Assuming you max-out your retirement savings and you work for 30 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)?You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ will deposit $10,000 in a retirement account for you which generates 12% return annually. In addition, the company deposits $5,000 every year in the same account, if you stays with XYZ. How much money will be accumulated in this account if you decide to retire 40 years from now?
- When your firm hires a new employee this year, it is obligated to contribute GBP £5,000 to a defined contribution plan for that employee, one year after the hire date. The contribution must be adjusted annually for inflation. Assume that inflation will be a constant 2.0% a year from this point forward. What is the pension cost to you of hiring a 30 year old who will be with the company for 32 years if the appropriate discount rate is 10%? Round your answer to the nearest pound.An employee is earning P 18,511 a month and he can only afford to purchase a car which will require a down payment of P 85,000 and a monthly amortization of 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of P 82,000 and the balance payable in four years at 18% per year payable in monthly basis. The first payment will be due at the beginning of the first month.You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to compare this offer to a lump sum payment. If you can earn 5% on your investments, how much is the contract worth to you today?