A Professional Rugby League Player Is Offered a Bonus of $150

question 1

Multiple Choice

A professional rugby league player is offered a bonus of $150 000 if he completes a five year playing contract with an NRL club.If money is worth 7 per cent to him what is this bonus worth today?

• A)$106 947.93
• B)$210 382.76
• C)$140 186.92
• D)$130 000.00
• E)$160 947.93

---

Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford given the prices of the goods and the consumer's income.

Music Downloads

Digital files of music tracks that are purchased and downloaded from the internet to a computer or mobile device.

Consumption

The use of goods and services by households, leading to the satisfaction of human wants or needs.

Cappuccinos

Espresso-based coffee drinks that are typically composed of equal parts espresso, steamed milk, and milk froth.