A local newspaper headline blared ldquobo smith signs for


A local newspaper headline blared, “Bo Smith Signs for $30 Million.” The article revealed that Bo Smith, the former record-breaking running back from Football University, signed a $30 million package with the Nebraska Lions. The terms of the contract were $3 million immediately, $2.4 million per year for the first 5 years (with the first payment after one year), and $3 million per year for the next 5 years (with the first payment at the end of year 6). If the interest rate is 8 percent compounded annually, what is Bo’s contract worth at the time of contract signing?

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Microeconomics: A local newspaper headline blared ldquobo smith signs for
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