Each year he will receive a bonus equal to 10 persent of, Ask an Expert

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Tom Adams has received a job offer from a large investment bank as a associate banker. His basse salary will be $45,000. He will receive his first annual salary payment one year from the day he begin to work. In addition, he will get an immediate $10,000 bonus for joining the company. His salary will grow at 3.5 persent each year. Each year he will receive a bonus equal to 10 persent of his salart. Mr. Adams is expected to work for 25 years. What is the present value of the offer if the discount rate is 12 persent?

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Category:- Basic Finance
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