Application of Time Value of Money Skills$1$ Assumptions and

Calculated Values

$\backslash$table$[[2,$Bank Rate Information:,$],[3,$Nick's Bank Account Rate,$\%$

Nick Nohitter has been playing baseball since he was five years old and has always dreamed of playing in the big leagues. Last season, he was a

starting pitcher for a double$-$A $($AA$)-$level baseball team, the Dodge City Cowboys; last year, he was the first runner$-$up for the Minor League Player of

the Year award. Using his $93mph$ fastball, an impeccable curve ball and slider, and a reliable changeup pitch, he achieved a $15-2$ win$-$loss record, an

earned run average $($ERA$)$ of $2\mathrm{.}76,$ and $123$ strikeouts in $99\mathrm{.}1$ innings pitched. He is also your best friend.

Two weeks ago, on his three$-$year anniversary with the team, Nick received the following email from his agent, Noah Never$-$Enough, indicating that he

is being called up to the Springfield Dusties, the Cowboys's corresponding Major League Baseball $($MLB$)$ team. Moreover, Nick's contract is being

revised to reflect his new status. The email describes the general terms and conditions of Nick's revised contract.