The Toronto Raptors announce the signing of their top draft pick to a "7-year deal worth $43.2 million." The player will earn $400,000 at the end of each month for the first three years, and $600,000 at the end of each month for the subsequent four years. How do the Raptors get the $43.2 million figure? To the nearest $1,000, what is the true current economic value of the deal if money can earn 7% compounded annually?

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The Answer of The Toronto Raptors announce the signing of their top draft pick to a "7-year deal worth $43.2 million." The player will earn $400,000 at the end of each month for the first three years, and $600,000 at the end of each month for the subsequent four years. How do the Raptors get the $43.2 million figure? To the nearest $1,000, what is the true current economic value of the deal if money can earn 7% compounded annually?

The Toronto Raptors Announce the Signing of Their Top Draft