Question: is there a way to solve this problem on a ti83/84 calculator? if so, please explain! 4) In 2000, the New York Mets released baseball
4) In 2000, the New York Mets released baseball player Bobby Bonilla. However, Bonilla's contract was for one more year and therefore one more year's salary. Instead of paying him in a lump sum, they agreed to defer paying him until 2011 with 25 annual payments of $1,193,248 (that is, payments from 2011 through 2035). At 8% Interest, what did the Mets owe Bonilla in 2000? A) $6.3 million B) $5.9 million C) $4.4 million D) $5.4 million E) $12.8 million Answer: B Explanation: A) B) Discount the PV of a 25 period annuity by 10 years: PV = 1,193,248/0.08(1-1/1.08 25/1.08-10 = $5,900,000
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