Fermando Slider has been a star baseball player for the Indianapolis Boomers for many years. Slider decided to become a free agent and offered his services to the highest bidder for four more years,before retiring to practice law in Miami:After many weeks of negotiations,Slider and his agent accepted the following offer from the Ohio White Shoes:

$(1)$ An annual salary of $$600,000$ for four years, payable in monthly instailments of $$50,000,$ starting one month from today

$(2)$ A deferred compensation of $$480,000,$ payable in monthly installments of $$10,000$ for four years,for services rendered during the four years of laying

baseball for the Ohio White Shoes.These payments will commence one month after the last payment of $$50,000$ is made to Slider.

$(3)$ A$""$signing bonus'" of $$120,000$ cash,payable immediately.

Headlines in sport pages around the nation stated that Slider had signed a $."$$$3$ million contract "with the Ohio White Shoes.

Instructions

Assuming that interest at the rate of $\frac{1}{2}\%$ a month is charged on personal loans to professional athletes,compute the present value today of the$*"$ $$3$ million contract"" signed by Fernando Slider with the Ohio White Shoes. Use the Appendix at the end of this chapter and round computations to the nearest dollar.