Signed a professional contract to play cricket

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Reference no: EM131194675

Suppose you have just signed a professional contract to play cricket in Argentina. The contract is for 4 years and is as follows. You get an immediate signing bonus of $280,000, followed by four years of quarterly payments of $75,000. Finally, you will receive a lump sum payment of $350,000 at the completion of the contract.

You plan to invest half of your signing bonus and 20% of all other payments in an account that earns 7.5%, compounded quarterly. Given this, and assuming no other payments, how much would you have cumulatively in the account at the end of 20 years?

Reference no: EM131194675

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