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You have been offered a job with an unusual bonus structure. As long as you...

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Question

Finance

You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra

$66,000

every seven years, starting seven years from now. What is the present value of this incentive if you plan to work for the company for

42

years and the interest rate is

6.2%

(EAR)? (Note: Be careful not to round any intermediate steps less than six decimal places.)

The present value of this incentive is

$nothing.

You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is

7.1%,

your loan payments are

$620

per month, and you have

36

months left on your loan. If you pay an additional

$1,400

with your next regular

$620

payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.)

The new time left to pay off your loan will be

nothing

months.

Answer & Explanation Solved by verified expert
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