In January 2011, your friend Leo signs a contract to play for a minor league baseball team. He will receive $600,000 for 2011, $700,000 for 2012, $800,000 for 2013, and $900,000 for 2014. All payments are made at the end of year. Assume 8% annual interest

[jackss_matrix]

In January 2011, your friend Leo signs a contract to play for a minor league baseball
team. He will receive $600,000 for 2011, $700,000 for 2012, $800,000 for 2013, and
$900,000 for 2014. All payments are made at the end of year. Assume 8% annual
interest rate (EAR).

[jackthehat]

American homework.........?

[albaqwerty]

I don't have a friend called Leo.

Also I don't have any minor or major baseball team near me.

Other than that, what on earth is your question??

[bednobs]

with no question.
Ps i don't have a friend loe, but i wish i did if he's earning so much

[bibblebub]

could be Canadian

[bednobs]

ps what is leo to live on for the whole of 2011?

[dzug2]

You haven't asked a question, so you've no right to an answer

[twix123]

If he gets that much for playing in a Minor League team, how much would he get in the Major Leagues...can I be his friend if he spreads the cash around??

[factor-fiction]

Any win bonuses?
Any fines for refusing to come off the bench?

I assume the question you meant to ask will need you to do a discounted cash flow using 8%pa

[DTCwordfan]

he has to pay tax so that rips a good slug off, and then there are his management fees, trainer fees, medical expenses, pension funding, insurance, or part deductible....

[sara3]

I know Leo.. he's a part-time singer with big hair.

[DTCwordfan]

Surely Leo is not the Lie-in King. Or is it he?

[factor-fiction]

i think he should complain that confidential information about his contract has been published on a public forum