What is the present value of the offer if the discount rate

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Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $47,000. He will receive his first annual salary payment one year from the day he begins to work. In addition, he will get an immediate $10,000 bonus for joining the company. His salary will grow at 2.7 percent each year. Each year he will receive a bonus equal to 10 percent of his salary. Mr. Adams is expected to work for 25 years.

What is the present value of the offer if the discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Present value=

Reference no: EM131346383

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