Calculating Annuity Values An All-Pro defensive lineman is in contract negotiations.

The team has offered the following salary structure:

Time Salary 0 $8,500,000 1 3,900,000 2 4,600,000 3 5,300,000 4 5,800,000 5 6,400,000 6 7,300,000 All salaries are to be paid in a lump sum. 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 $1,500,000. He also wants an equal salary paid every three months, with the first 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.