The CEO has decided to plan for a salary action affecting a number of individuals in the organization. He has decided to give a $2,000 cost-of-living pay increase to all hourly employees and a $4,000 increase to all software analysts with salaries less than $55,000. However, he wants to do this in 2 years. He wants you to give him two options (you do not have to recommend an option). Option 1: How much would he have to invest today in a single lump sum at a 6% annual interest rate compounded quarterly to have sufficient funds to execute his plan? Option 2: How much would he have to invest in

Question

The CEO has decided to plan for a salary action affecting a number of individuals in the organization. He has decided to give a $2,000 cost-of-living pay increase to all hourly employees and a $4,000 increase to all software analysts with salaries less than $55,000. However, he wants to do this in 2 years. He wants you to give him two options (you do not have to recommend an option).  Option 1: How much would he have to invest today in a single lump sum at a 6% annual interest rate compounded quarterly to have sufficient funds to execute his plan?  Option 2: How much would he have to invest in

trancenova · Answer

Hi Woody, sorry to say but you accidentally posted in the wrong section. 

You'll be sure to find an answer in finance/mathematics- feel free to ask your question there. 

This question is closed as it is in the wrong section. 

You can find other subjects by clicking "find more subjects" above. If you have any questions about this feel free to ask :)