An MLB player is in contract negotiations. The current contract is as follows:

Year Salary

0 $8,000,000 (Signing Bonus)

1 $4,000,000

2 $4,800,000

3 $5,700,000

4 $6,400,000

5 $7,000,000

6 $7,500,000

Assume the payments are at the end of the year. Interest rate is 8%.

The player has asked you as his agent to negotiate the terms of a new contract:

1. He wants a contract increase of $750,000 over the previous contract.

2. He wants the new 6-year contract paid out in the following way: A $9 million signing bonus payable today and an equal salary paid every three months (quarterly) with the first paycheque three months from now.

Assuming the team agrees to his new demands, if the interest rate is 8% annually what is the amount of his quarterly payment?