During the year that you won the Heisman trophy, an agent (Michael Michaels) gave you free money, travel, and a home for your parents. He hoped that you would sign with his firm. You didnt sign with his firm, and he is upset. You dont want him to go public with the story because your actions are against NCAA rules.

To keep Mr. Michaels quiet, you agree to pay him $340,000 at the end of each year you play in the NFL. Today you started your rookie season, and you anticipate playing for 7 years. Assume a 5.75% rate.

How much would you have to put away today in order to cover the cost of the blackmail?