Is it really a half-billion dollar deal?
As reported on spotrac.com, Patrick Mahomes signed a 10-year, $450,000,000 contract with the Kansas City Chiefs in July 2020, with an average annual salary of $45,000,000.
a) How much was this contract worth in July 2020? Assume that his interest rate is 5% per year, and he is paid annually in July (i.e., an annual, not monthly, paycheck).
b) For years 2022 through 2031, what is the annual equivalent of this contract?
