Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 6,400,000 1 5,000,000 2 5,500,000

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:

Time Salary
0 $ 6,400,000
1 5,000,000
2 5,500,000
3 6,000,000
4 7,400,000
5 8,100,000
6 8,900,000

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 $9.9 million signing bonus payable today and a contract value increase of $1,900,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 5.4 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Finance Core Theory Problems And Statistical Algorithms

Authors: Nikolai Dokuchaev

1st Edition

0415414482, 978-0415414487

More Books

Students also viewed these Finance questions

Question

Consistently develop management talent.

Answered: 1 week ago

Question

Create a refreshed and common vision and values across Europe.

Answered: 1 week ago

Question

Provide the best employee relations environment.

Answered: 1 week ago