Question

Your first job out of college will pay you $61,000 in year 1 (exactly one year...

Your first job out of college will pay you $61,000 in year 1 (exactly one year from today), growing at a rate of 3.0% per year thereafter. You will also receive a one time bonus of $39,000 at the same time as your first salary. You plan to retire in 39 years (you'll receive 39 years of salary). If the applicable discount rate is 6%, what is the present value of these future earnings today? Round to the nearest cent.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your first job out of college will pay you $84,000 in year 1 (exactly one year...
Your first job out of college will pay you $84,000 in year 1 (exactly one year from today). You estimate that your salary will grow at 6% per year for 45 years (compounded annually), when you'll stop working. If the applicable discount rate is 12%, what is the present value of these future earnings today? Round to the nearest cent. You own a 10-acre vineyard and earn income by selling your grapes to wineries. Your vineyard is currently planted to...
Given two salary options, which option should you accept? #1: Paid $64,000 for first year and...
Given two salary options, which option should you accept? #1: Paid $64,000 for first year and your salary is increases 3.70% yearly. #2: Paid a starting bonus of $24,000 today. First-year salary will be $60,000 and it will increase 3.8% every year. Market Interest Rate is 8.20% and job time is 10 years.
Excel retirement problem:  You just got your first job and plan to start saving for...
Excel retirement problem:  You just got your first job and plan to start saving for retirement by investing with each monthly paycheck.  You plan to retire in 45 years.  In 50 years, you want to give your daughter a gift of $1,000,000.  You will receive an inheritance from a rich great-uncle of $250,000 in 20 years.  You think you will want $150,000 every year when you retire, starting the day you retire. You plan to...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you have $105,736.62 accumulated in your retirement plan and plan to continue adding money each month to your retirement plan for exactly 25 years, starting one month from now. When you retire you will receive a $40,000 retirement bonus from your employer and will immediately deposit the money into your retirement plan. You will then use the accumulated funds to purchase an annuity that will...
You are considering a job that offers a starting bonus of $2,500, paid immediately, and an...
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?
You are saving for the college education of your two children. They are two years apart...
You are saving for the college education of your two children. They are two years apart in age; one will begin college 13 years from today and the other will begin 15 years from today. You estimate your children’s college expenses to be $39,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.3 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child...
Assume that Social Security promises you $43,000 per year starting when you retire 45 years from...
Assume that Social Security promises you $43,000 per year starting when you retire 45 years from today​ (the first $43,000 will get paid 45 years from​ now). If your discount rate is 7%​, compounded​ annually, and you plan to live for 18 years after retiring​ (so that you will receive a total of 19 payments including the first​ one), what is the value today of Social​ Security's promise? The value today of Social​ Security's promise is ​(Round to the nearest​...
The first two questions below rely on the following assumptions: Exactly one year ago, you purchased...
The first two questions below rely on the following assumptions: Exactly one year ago, you purchased $10,000 of U.S Treasury Bonds. These bonds have a maturity date 30 years from the time of purchase. The annual coupon rate on these bonds at the time of purchase was 4%. The U.S Treasury today has issued 30 year bonds with an initial coupon rate of 5%. There are no transactions fees to buy or sell these bonds. 1. Calculate the current price...
You are saving for the college education of your two children. They are two years apart...
You are saving for the college education of your two children. They are two years apart in age; one will begin college 13 years from today and the other will begin 15 years from today. You estimate your children’s college expenses to be $39,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.3 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child...
You have just started a new job and plan to save $5,450 per year for 31...
You have just started a new job and plan to save $5,450 per year for 31 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.19 percent?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT