Question: When is $ 7 0 0 million not $ 7 0 0 million? Shohei Ohtani signed a reported 1 0 year $ 7 0 0

When is $700 million not $700 million? Shohei Ohtani signed a reported
10 year $700 million contract to play baseball for the Los Angeles Dodgers
in December 2023. The contract pays $2 million a year for 10 years. The
contract pays $68 million each year for ten years after its expiry: it defers
$68 million a year. Assume the interest rate is 5%. Assume all payments
occur at the end of a year.

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