Babe Ruth Jr. has agreed to play for the Toronto Blue Jays for $9 million per year for the next 10 years. What table would you use to calculate the value of this contract in today's dollars?

Question

Quizplus · Accepted Answer

The present value of an annuity table would be the most appropriate to use in this scenario as the contract is for a set amount per year for a specific amount of time. This table would allow you to calculate the current value of the future payments based on an assumed interest rate.