Reference no: EM13288409
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure:
Time Salary ($)
0 6,500,000
1 5,100,000
2 5,600,000
3 6,100,000
4 7,500,000
5 8,200,000
6 9,000,000
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 million signing bonus payable today and a contract value increase of $2,000,000. He also wants an equal salary paid every 3 months, with the first paycheck 3 months from now. If the interest rate is 5.5% compounded daily, what is the amount of his quarterly check? Assume 365 days in a year.
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