Problem:
In 2012, a baseball player signed a contract reported to be worth $107.2 million. The contract was to be paid as $16.2 million in 2012, $16.1 million in 2013, $18.6 million in 2014, $18.7 million in 2015, $18.7 million in 2016, and $18.9 million in 2017.
Task:
Question: If the appropriate interest rate is 12 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.
Note: Provide support for your rationale.