Question

An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:

	Time			Salary
	0		$	6,700,000
	1		$	5,300,000
	2		$	5,800,000
	3		$	6,300,000
	4		$	7,700,000
	5		$	8,400,000
	6		$	9,200,000

  

All salaries are to be paid in lump sums. The player has asked you as his agent to renegotiate the terms. He wants a $10.2 million signing bonus payable today and a contract value increase of $2,200,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the interest rate is 5.7 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1