An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:

All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants an $8 million signing bonus payable today and a contract value increase of $1,500,000. He also wants an equal salary paid every three months, with the fi rst paycheck three months from now. If the interest rate is 5 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

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TIME SALARY 0 $5,000,000 1 $4,000,000 2 S4,800,000 3 S5,600,000 4 S6,200,000 5 S6,800,000 6 $7,300,000