^{Xavier is a baseball Player negotiating a Contract to play}

question 301

Multiple Choice

^{Xavier is a baseball player negotiating a contract to play for a team for one year. He is usually paid $10 million a year for playing, but the salary cap for his team means that he will have to be paid $5 million this year and the remainder next year. If the interest rate is 8 percent, how much should that} remaining amount be next year?

• A)$5.0 million
• B)$5.1 million
• C)$5.4 million
• D)$6.1 million