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15 October, 14:33

A bonus package pays an employee $800 at the end of the first year, $1800 at the end of the second year, $2800 at the end of the third year, and so on ... continuing to increase by $1000 every year for the first nine (9) years of employment. What is the approximate present value today of the bonus package at 6% interest?

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  1. 15 October, 18:07
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    The present value for this bonus is $30,018.13

    Explanation:

    pv n i FV

    754.72 1 6% 800

    1601.99 2 1800

    2350.93 3 2800

    3009.96 4 3800

    3586.84 5 4800

    4088.77 6 5800

    4522.39 7 6800

    4893.82 8 7800

    5208.71 9 8800

    30018.13
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