Question
Stadium Capital Financing Group is a Chicago company that conceived the so-called sports mortgage wherein fans agree to pay a relatively large amount of money
Stadium Capital Financing Group is a Chicago company that conceived the so-called sports mortgage wherein fans agree to pay a relatively large amount of money over a 10- to 30-year period for the right to buy top seats for football games for up to the next 50 years. In return, season ticket prices stay locked in at currentyear prices, and the package can be sold in the secondary market, while taking a tax write-off for donating to a school. Assume a fan buys a sports mortgage at West Virginia University for $150,000 that is to be paid over a 10-year period with the right to buy two season tickets for $300 each for the next 30 years. The first payment is made now (i.e., beginning-of-year payment), and an additional nine payments are to be made at the end of each year for the next 9 years. Assume the fan also purchases the two season tickets (also beginning-of-year payments). What is the total amount of the payment each year in years 0 through 9 ? Use an interest rate of 10% per year.
PLEASE DRAW THE CASH FLOW DIAGRAMMMM
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