Posted: 12/11/2002 7:54:48 PM EDT
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If a certain QB signs a 7 year 50 million dollar contract; and over that period he has a lump sum of 35 million drawing 3% interest; At a compound rate, what is he getting over a years period? |
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If the interest is compounded annually He would have: Future Value = Initial Value(1+i)^n So..the Initial Value = 35 Million The interest = i = .03 The number of years = n = 1 Therefore he would have Future Value = 35 Million x 1.03 = 36 Million Fifty Thousand Dollars. |