The Montreal Canadiens Have Just Announced the Signing of Finnish

question 55

Short Answer

The Montreal Canadiens have just announced the signing of Finnish hockey sensation Gunnar Skoroften to a 10-year contract at $3 million per year. The media are reporting the deal as being worth $30 million to the young Finn. Rounded to the dollar, what current economic value would you place on the contract if Skoroften will be paid $250,000 at the end of each month and money can earn 6% compounded monthly?

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Definitions:

Preoperational

A stage in Piaget’s cognitive developmental theory during which children from ages 2 to 7 engage in symbolic play and struggle with taking the perspective of others.

Postformal

A stage of cognitive development beyond formal operational thought, where individuals can understand and integrate conflicting ideas, abstract reasoning, and situational flexibility.

Freestyle Motocross

An extreme sport involving motorcycle riders performing aerial stunts and jumps.

Extreme Sport

A category of sports that are perceived as having a high level of inherent danger or that involve adrenaline-inducing action.