Football Player Walter Johnson Signs a Contract Calling for Payments

question 8

Multiple Choice

Football player Walter Johnson signs a contract calling for payments of $2,500,000 per year, to begin 10 years from now. To find the present value of this contract, which table or tables should you use?

• A) the future value of $1
• B) the future value of an annuity of $1 and the future value of $1
• C) the present value of an annuity of $1 and the present value of $1
• D) the present value of an annuity of $1

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Definitions:

Blanket Statement

A generalization that is broad and overlooks exceptions or variability.

Fallacy

A mistake in logic that makes an argument incorrect or deceptive.

Accident

The fallacy of applying a generalization to a special case in disregard of qualities or circumstances that make it an exception to the generalization.

General

Relating to or involving all or most people, things, or places, especially without specifying details.