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The prime contractor, Hochtief, will be repaid over 10 years, starting six months after handover of the project for its $770 million contract (calculated as

The prime contractor, Hochtief, will be repaid over 10 years, starting six months after handover of the project for its $770 million contract (calculated as of the day of the handover). Assume Hochtief will receive a 5% nominal interest for every year of the 10 year period, and will be paid one tenth of the contracted amount at the end of each year plus interest on the unpaid balance. How much money will Hochtief have received in total after 10 years? If you were Hochtief, would you like this payment schedule? Explain your reasoning.

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