A Famous Athlete Is Awarded a $9 Million Contract That

question 50

Multiple Choice

A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years.To determine what such a contract is worth today,you would need to use:

• A)present value factors
• B)future value factors
• C)present value factors of an annuity
• D)future value factors of an annuity

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Definitions:

Nature and Quality

A term that refers to the essential characteristics and standards of goods or services.

Commercial Activity

Any type of business operation or venture that involves the exchange of goods or services for profit.

Federal Jurisdiction

The authority granted to federal courts and government to govern and make legal decisions on certain issues and cases, often defined by law or constitution.

State Jurisdiction

The authority given to a state to govern and enforce laws within its territory.