Problemin 2011 a running back signed a contract worth 621, Ask an Expert

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Problem:

In 2011, a running back signed a contract worth $62.1 million. The contract called for $12 million immediately and a salary of $2.9 million in 2011, $8.3 million in 2012, $12 million in 2013, $8.8 million in 2014 and 2015, and $9.3 million in 2016.

Required: If the appropriate interest rate is 11 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $12 million are paid at the end of the year. Show your all work and describe in detail.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145993

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