Clair is a soccer player that just signed a 3-year contract with a new team. The...

 

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Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $58,000 today $67,000 at the end of year 1 $73,000 at the end of year 2 $89,000 at the end of year 3 If the discount rate is 5.5%, what is the value of her contract today? Clair is a soccer player that just signed a 3-year contract with a new team. The contract will pay her as follows: $58,000 today $67,000 at the end of year 1 $73,000 at the end of year 2 $89,000 at the end of year 3 If the discount rate is 5.5%, what is the value of her contract today?

Answer rating: 100% (QA)

To find the present value of Clairs contract we need to discount each payment back ... View the full answer