How much of his annual salary will be left, after he makes

Reference no: EM133559911

Question: Alex Rodriguez recently signed a contract with the Texas Rangers that will pay him approximately 250 million dollars over the next 10 years. In this problem, assume that he will receive his pay annually in 25 million dollar installments, and that he has just received the first payment. Suppose that he decides to set aside a fixed amount each year to fund a perpetuity of 18500000 dollars per year for his retirement, with the first payment to come in 14 years. If the effective rate of interest is 7.6 percent, how much of his annual salary will be left, after he makes his perpetuity investment?

Reference no: EM133559911

Questions Cloud

How will you share the plan and provide support to educators : How will you share the plan and provide support to educators to ensure a consistent approach when implementing your identified strategies?

Flow control iteration and strings discussion : Provide outstanding and illuminating answers to your questions. There must be at least one image provided to supplement one of the answers

How does material reviewed this week impact your impression : How does the material reviewed this week impact your impression of the healthcare industry and your role within the industry?

What challenges do you see in your future professional role : Do you agree or disagree with the arguments of the HBR Analytic Services Report? Explain your reasoning. Given the changing nature of HR, technology

How much of his annual salary will be left, after he makes : If the effective rate of interest is 7.6 percent, how much of his annual salary will be left, after he makes his perpetuity investment

Discuss about the new employee loyalty scheme : Create a landing page + You are the leader of a small team who needs to design and create a landing page on the website with information about the new employee

What other assessment findings should you anticipate : What other assessment findings should you anticipate? Does this dysrhythmia need treatment? Why or why not? What intervention would you implement first?

Considerations of csr in global business environments : Why might understanding the state of various economies in relation to one another be so important to considerations of CSR in global business environments?

Research purpose of this organization to provide a framework : You should research the purpose of this organization to provide a framework prior to researching the change.

User Account

All Pages