question archive You've recently finished your graduate degree (congrats!)

You've recently finished your graduate degree (congrats!)

Subject:FinancePrice:3.86 Bought8

You've recently finished your graduate degree (congrats!). Fresh off graduation, you have accepted a position as a hospital administrator. They've offered you two different salary arrangements. You can have $150,000 per year for the next two years, or you can have $125,000 per year for the next two years, along with a $50,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 7 percent compounded monthly, which do you prefer? Please show the present value of each option.

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