You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $76,000 per year per child, payable at the beginning of each school year. The appropriate interest rate is 7.8 percent. How much money must you deposit in an account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college for each child.

All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10 million signing bonus payable today and a contract value increase of $2 million. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the APR rate is 4.8 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

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Time 0 123456 Salary $7,900,000 4,500,000 5,300,000 6,100,000 6,700,000 7,700,000 9,300,000