Problem:

In 2012, a baseball player signed a contract reported to be worth $89.8 million. The contract was to be paid as $13.2 million in 2012, $13.7 million in 2013, $15.6 million in 2014, $15.7 million in 2015, $15.7 million in 2016, and $15.9 million in 2017.

Required:

Question: If the appropriate interest rate is 13 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.

Note: Please show how you came up with the solution.