If the interest rate is 47 compounded annually how much


A professional baseball player signs a contract for $160 million to play with a team for 7 years. He and his team agree that the contract will be spread out so that the player is paid beyond the 7 years. The payment plan for the contract is as follows:

$18 million each year for years 1 through 7.

$3.1 million each year for the next 8 years.

$1.4 million each year for the next 4 years.

You should assume that the baseball team will pay the player annually at the end of each year and that he will receive the first $18 million at the end of the first year. The player receives money for 19 years.

If the interest rate is 4.7% compounded annually, how much does the baseball team need to deposit in year 0 in order to fully fund this contract? Express your answer in millions of dollars.

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Financial Management: If the interest rate is 47 compounded annually how much
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