Question
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 5,600,000 1 4,200,000 2 4,700,000
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:
Time Salary
0 $ 5,600,000
1 4,200,000
2 4,700,000
3 5,200,000
4 6,600,000
5 7,300,000
6 8,100,000
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 $9.1 million signing bonus payable today and a contract value increase of $1,100,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 4.6 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
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