The Springfield Crusaders Just Signed Their Quarterback to a 10

question 31

Multiple Choice

The Springfield Crusaders just signed their quarterback to a 10 year $50 million contract.Is this contract really worth $50 million? (assume r >0)

• A) Yes, because the payments over time add up to $50 million.
• B) No, it is worth more because he can invest the money.
• C) No, it would only be worth $50 million if it were all paid out today.
• D) Yes, because his agent told him so.

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Definitions:

Millimeters

A metric unit of length equal to one thousandth of a meter.

Meters

A unit of length in the metric system equal to 100 centimeters, used worldwide to measure distance.

Millimeters

A unit of measurement for length that is equal to 0.001 meters.

Meters

The fundamental unit of length in the metric system, equal to 100 centimeters.