In December of 2000 Alex Rodriguez (A-Rod) became the highest paid baseball player of all time....

 

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In December of 2000 Alex Rodriguez (A-Rod) became the highest paid baseball player of all time. A-Rod signed a 10-year $252 million free agent contract with the Texas Rangers. The details of his contract are: Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Annual Salary (millions) $21 $21 $21 $21 $25 $25 $27 $27 $27 $27 Amount Paid (millions) $16 $17 $18 $18 $21 $21 $23 $24 $24 $24 Amount Deferred (in millions) (3% interest) $5 paid in 2011 $4 paid in 2012 $3 paid in 2013 $3 paid in 2014 $4 paid in 2015 $4 paid in 2016 $4 paid in 2017 $3 paid in 2018 $3 paid in 2019 $3 paid in 2020 Did A-Rod actually receive $252 million dollars? Assume an interest rate of 6%. You have to quantitatively support your answer. In December of 2000 Alex Rodriguez (A-Rod) became the highest paid baseball player of all time. A-Rod signed a 10-year $252 million free agent contract with the Texas Rangers. The details of his contract are: Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Annual Salary (millions) $21 $21 $21 $21 $25 $25 $27 $27 $27 $27 Amount Paid (millions) $16 $17 $18 $18 $21 $21 $23 $24 $24 $24 Amount Deferred (in millions) (3% interest) $5 paid in 2011 $4 paid in 2012 $3 paid in 2013 $3 paid in 2014 $4 paid in 2015 $4 paid in 2016 $4 paid in 2017 $3 paid in 2018 $3 paid in 2019 $3 paid in 2020 Did A-Rod actually receive $252 million dollars? Assume an interest rate of 6%. You have to quantitatively support your answer.

Answer rating: 100% (QA)

To determine if ARod actually received 252 million dollars for his 10year contract we need to consid... View the full answer