Saleem Swingman 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 Ketchum Baldies; last year, he was the first runner$-$up for the Minor League Player of the Year award. Using his $93$ mph 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, Saleem received the following email from his agent, Noah Never$-$Enough, indicating that he is being called up to the Springfield Dusties, the Baldies$$s corresponding Major League Baseball $($MLB$)$ team. Moreover, Saleem$$s contract is being revised to reflect his new status. The email describes the general terms and conditions of Saleem$$s revised contract.

From: Noah Never$-$Enough

To: Saleem Swingman

Subject: New Team, New Contract Proposal

Saleem,

Congratulations! You$$ve been called up to the Springfield Dusties. Below are the offered terms and conditions of your new contract. After you review them and think about the offer, call me and we$$ll discuss your options. Congrats again!

Salary and Incentives:

$$ Saleem Swingman hereafter referred to as the $$Player$,$ is offered a four$-$year contract with an annual salary of $$414,000$ per year, to be paid at the end of each month in the contract term.

$$ Under the league$$s collective bargaining agreement, the Player will receive a $4\%$ cost$-$of$-$living adjustment $($COLA$)$ to his annual salary at the beginning of every other year. This means that the Player$$s annual salary will increase at the beginning of year $2$ and year $4,$ as applicable.

$$ In addition, the Player will receive a one$-$time $$15,000$ time$-$in$-$league bonus after six months of participation with an MLB team. This bonus will be paid immediately on completion of the six$-$month period.

$$ The Player is offered a performance$-$based bonus, as well as a milestone bonus. Both are intended to encourage outstanding performance.

$$ The Player is offered the following award$-$based performance incentive: a $15\%$ bonus if he is designated as the Most Valuable Player $($MVP$)$ in the league. The Player is also offered the following milestone bonus: a $$150,000$ bonus if he ties Nolan Ryan$$s $1973$ single$-$season strikeout record $(383$ strikeouts$).$

$$ The Player is eligible for each potential bonus each year that the contract is in effect and, if expressed as a percentage, will be based on the value of the Player$$s base annual salary for the corresponding year. If earned, the performance and milestone bonuses will be distributed in a single payment at the beginning of the next contract year. Although this proposal describes only one milestone, the actual contract contains several progressive milestones. Exceeding one milestone creates the opportunity to exceed another.

In addition to the proposal offered by the Dusties, I$$ve also been able to secure the following endorsement opportunity:

A local car dealer has offered you a contract that will pay $$3,000$ per month for two years. This contract is contingent on your accepting the contract with the Dusties and will take effect immediately upon signing your MLB contract. In return for these payments, you will participate in the dealer$$s promotional events, such as signing autographs and allowing photographs as requested.

I$$ve also attached a worksheet that you can use to analyze the deal. I$$m in negotiations for the rest of the day, so let$$s discuss your thoughts on the contract proposal tomorrow. I$$m proud of you!

Take care,

Noah

Noah Never$-$Enough

Sports Agent, R&R Talent Management Inc. $|$ Springfield

Saleem is so excited! According to Noah, the contract is worth $$2,564,400$assuming receipt of all possible bonuses. After rereading the email twice and calling his family, Saleem called you to review the terms of the contract and verify Noah$$s calculations. After an extended conversation about what he$$ll do with his newfound wealth, you and Saleem have agreed that any funds received could be invested to earn $5\mathrm{.}50\%,$ compounded monthly.