Two different salary arrangements

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Reference no: EM131328109

BDO Limited just hired you and has offered you two different salary arrangements. Arrangement 1: you can have $90,000 per year for the next two years or Arrangement 2: you can have $65,000 per year for the next two years, along with a $45,000 signing bonus today.

The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?

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Reference no: EM131328109

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