A local newspaper headlineâ blared, "Bo Smith Signed forâ $30Million." A reading of the article revealed that on Aprilâ 1, 2014,Boâ Smith, the formerâ record-breaking running back from FootballâUniversity, signed aâ $30 million package with the Dallas Rangers.The terms of the contract wereâ $3 millionâ immediately, $2.4million per year for the first five yearsâ (with the first paymentafter oneâ year) andâ $3 million per year for the next five yearsâ(with the first payment at yearâ 6). Ifâ Bo's interest rate isâ 8%perâ year, what would his contract be worth at the time he signsâit?

Question

A local newspaper headlineâ blared, "Bo Smith Signed forâ $30Million." A reading of the article revealed that on Aprilâ 1, 2014,Boâ Smith, the formerâ record-breaking running back from FootballâUniversity, signed aâ $30 million package with the Dallas Rangers.The terms of the contract wereâ $3 millionâ immediately, $2.4million per year for the first five yearsâ (with the first paymentafter oneâ year) andâ $3 million per year for the next five yearsâ(with the first payment at yearâ 6). Ifâ Bo's interest rate isâ 8%perâ year, what would his contract be worth at the time he signsâit?

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