An Athlete Was Offered the Following Contract for the Next

question 119

Multiple Choice

An athlete was offered the following contract for the next three years:

The athlete would rather have his salary in equal amounts at the END of each of the three years.If the discount rate for the athlete is 10%,what yearly amount would she consider EQUIVALENT to the offered contract?

• A) $5.37 million per year
• B) $5.70 million per year
• C) $6.71 million per year
• D) $6.87 million per year

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Definitions:

Mean

The average value in a set of numbers, calculated by dividing the sum of all values by the number of values.

Prove Observations

The process of validating or verifying observed phenomena through repeated testing or experimental confirmation.

Interpret Observations

The process of explaining or finding the meaning in the data, actions, or events that one notices or records.

Summarise Observations

The process of briefly describing the main points or significant details noted during an examination or study.