Question
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Year Salary 0 $ 3,000,000 1 $ 3,000,000 2
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:
Year Salary
0 $ 3,000,000
1 $ 3,000,000
2 $ 3,800,000
3 $ 4,700,000
4 $ 5,400,000
5 $ 6,000,000
6 $ 6,000,000
All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $9 million signing bonus payable today. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the interest rate is APR 6 percent compounded quarterly, what is the amount of his quarterly check?
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