Scenario $6$: A major sports team has just negotiated a contract with one of the top free agent players available this year. After months of negotiations, he signed a contract with the following terms:

An annual salary of $$900,000$ a year for four years, payable in monthly installments of $$75,000$ per month starting one month from now.

A deferred compensation package of $$1,920,000,$ payable in monthly installments of $$40,000$ for four years, for services rendered during the four years of active service for the Spokane Stars. These payments commence one month after the last payment of $$75,000$ is made.

Your client, the local newspaper, contacts you to verify that the value of the contract is $$4,620,000.$ You do some checking and find that professional athletes generally have to pay an $18\%$ compounded monthly rate of interest on personal loans. What is the actual present value of this contract?

Hint: Is this an annuity problem, a lump sum problem, or both?