"You have been charged with putting together a redundancy package for a departing exe

cheeversamy

New member
Joined
Oct 18, 2016
Messages
1
"You have been charged with putting together a redundancy package for a departing exe

can anyone help with either of these questions


1.
You have been charged with putting together a redundancy package for a departing executive. The executive has asked for the following: (1) The present value of the next two years’ lost pay. The executive’s current annual salary is £120,000 and historical salary growth is 5 per cent per annum. (2) £100,000 for reputation management and a non-disclosure contract. (3) £20,000 non-competition agreement. If the effective annual interest rate is 6 per cent, what is the size of the settlement? If you were the departing employee, would you like to see a higher or lower interest rate?


2.
You have an investment that will pay you 1.17 per cent per month. How much will you have per euro invested in one year? In two years?
 
can anyone help with either of these questions

1. You have been charged with putting together a redundancy package for a departing executive. The executive has asked for the following: (1) The present value of the next two years’ lost pay. The executive’s current annual salary is £120,000 and historical salary growth is 5 per cent per annum. (2) £100,000 for reputation management and a non-disclosure contract. (3) £20,000 non-competition agreement. If the effective annual interest rate is 6 per cent, what is the size of the settlement? If you were the departing employee, would you like to see a higher or lower interest rate?

2. You have an investment that will pay you 1.17 per cent per month. How much will you have per euro invested in one year? In two years?
What are your thoughts? What have you tried? How far have you gotten? Where are you stuck? For instance, the second exercise is a simple application of one of the formulas they gave you. Where are you bogging down in the plug-n-chug?

Please be complete. Thank you! ;)
 
Top