Question $7$

Desperate for quarterback help after an injury to Tua Tagovailoa, the Miami Dolphins approach recently

retired Teddy Bridgewater with this offer:

The Dolphins will pay Bridgewater a one$-$time payment of $$2$ million up front for the $2024$

season, or

The Dolphins will pay Bridgewater $$200,000$ up front, $$1,000,000$ three years from now, and

$$1,300,0005$ years from now.

Bridgewater earns an average of $8\%$ on his investments. The value of option $1$ is $$2$ million. What is the

value of option $2?$

$