311.

413.3

3.Let’s say that during your salary negotiations with Lucasfilm you are given the following offer: either get $10,000 a year extra in salary for the next 40 years, or get $80,000 a year extra in pension for 25 years, starting 41 years from now. Assuming an interest rate of 12%, which should you take (ignore any tax considerations)? (10)

Show Answer

Back to Practice Problems