A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years.To determine what such alump sum has the same value as the contract is worth today, you would need to use:

Question

Quizplus · Accepted Answer

To find the lump sum equivalent of a series of equal payments made over time, you use the present value factors of an annuity. This helps determine the current worth of the future payment stream.

A Famous Athlete Is Awarded a $9 Million Contract That