Tom Adams has received a job offer from a large investment bank as a clerk to an associate banker. His base salary will be $45,000.

annual salary payment one year from the day he begins to work. In addition, he will get an immediate $10,000.00 bonus for joining the company. His salary will grow at 3.5% each year. Each year he will receive a bonus equal to 10% of his salary. Mr. Adams is expected to work for 25years. What is the present value of the offer if the discount rate is 12%?