You are hetting paid $12,000 a month, at the end of each wokeing month. What is the present value of a year's salary knowing that the annual interest rate is 9%. You employer is also offering to pay you $6,000 bi month(twice a month). What are the present values of a year salary paid in these two different way? which one do you prefer if you want to maximize the present value of your payments.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are hetting paid $12,000 a month, at the end of each wokeing month. What is the present value of a year's salary knowing that the annual interest rate is 9%. You employer is also offering to pay you $6,000 bi month(twice a month). What are the present values of a year salary paid in these two different way?

which one do you prefer if you want to maximize the present value of your payments.

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