You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $7,900 per month for the next three years, or you can have $6,600 per month for the next three years, along with a $35,500 signing bonus today. Assume the interest rate is 5 percent compounded monthly. If you take the first option, $7,900 per month for three years, what is the present value?
Present value $
What is the present value of the second option?
Present value $