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:

Mesothelioma

A type of cancer that develops from the thin layer of tissue covering many of the internal organs, known as the mesothelium, often linked to asbestos exposure.

Asbestos

A group of six naturally occurring fibrous minerals that are resistant to heat, fire, and chemicals, historically used in construction materials but hazardous to lung health.

Sensitization

The process by which repeated exposure to a stimulus results in an enhanced response at a physiological or cellular level.

Respiratory System

A biological system consisting of specific organs and structures used for gas exchange in animals and plants.