Question: A professional baseball player is offered a contract for an annual salary of $5,000,000 for 6 years. Also offered is a bonus (based on performance)

A professional baseball player is offered a contract for an annual salary of $5,000,000 for 6 years. Also offered is a bonus (based on performance) of either $400,000 each year, or a 5.00% increase in salary each year. Which bonus option pays more over the term of the contract, and how much more?

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