You have started a job with an annual salary of $48,000. You will get the paycheck at the end of each month, and your deductions for taxes will be 34%. Using a discount rate of 0.8% per month, find the present value of the take home pay for the whole year.

 You have started a job with an annual salary of $48,000. You will get the paycheck at the end of each month, and your deductions for taxes will be 34%. Using a discount rate of 0.8% per month, find the present value of the take home pay for the whole year.

Answer

Monthly interest rate = 0.8% = 0.008

Monthly salary = 48000/12 = 4000

Monthly salary after tax = 4000 x (1-0.34) = 2640

So Answer is 30,092.34