1. .Shigei Ohtani, the Los Angeles Dodgers slugger has been offered a contract for $800 million. The contract calls for a payment of $20 m per year for 10 years and $100 m per year for the following 6 years. How much is that contract worth today if the interest rate is 10 percent per year

2. Your current salary is 100,000 per year. If you save 10 percent of your salary and invest it at 6% per year a) How much will you have at the end of 30 years? b) How much will you have at the end of 30 years if your salary grows at 6% per year.

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