You Ve Just Joined An Investment Banking Firm They Ve Offered You Two Different Salary Arrangements You Can Have 8 50 1 (43.58 KiB) Viewed 20 times
You Ve Just Joined An Investment Banking Firm They Ve Offered You Two Different Salary Arrangements You Can Have 8 50 2 (31.17 KiB) Viewed 20 times
You've just joined an investment banking firm. They've offered you two different salary arrangements. You can have $8,500 per month for the next two years, or you can have $7,200 per month for the next two years, along with a $30,000 signing bonus today. Assume the interest rate is 9.9 percent compounded monthly. a. If you take the first option, $8,500 per month for two years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value b. Present value
Prepare an amortization schedule for a three-year loan of $87,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Leave no cells blank. You must enter '0' for the answer to grade correctly.) Year 1 2 3 Beginning Balance $ 87,000.00 Total Payment Total Interest Interest Payment Principal Payment Ending Balance
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