Question: In 2011, a running back signed a contract worth $58.7 million. The contract called for $11 million immediately and a salary of $2.7 million in

In 2011, a running back signed a contract worth $58.7 million. The contract called for $11 million immediately and a salary of $2.7 million in 2011, $7.9 million in 2012, $11 million in 2013, $8.6 million in 2014 and 2015, and $8.9 million in 2016.

Required:

If the appropriate interest rate is 9 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $11 million are paid at the end of the year.

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