The football coach at a university was given a five-year


Question: The football coach at a university was given a five-year employment contract that paid $225,000 the first year, and increased at an 8% uniform rate in each subsequent year. At the end of the third year of the football season, the alumni demanded that the coach be fired. The alumni agreed to buy out his remaining years on the contract by paying him the equivalent present sum, computed with a 12% interest rate. What amount will the coach receive?

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