Upon graduating from college this year you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5%. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year? A. $8,750 B. $8,333 C. $10,000 D. $9,524
Upon graduating from college this year you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5%. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year? A. $8,750 B. $8,333 C. $10,000 D. $9,524
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 16PROB
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Upon graduating from college this year you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5%. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year?
A. |
$8,750 |
|
B. |
$8,333 |
|
C. |
$10,000 |
|
D. |
$9,524 |
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