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After being drafted in the first round of the NFL draft, a star defensive end invests...

After being drafted in the first round of the NFL draft, a star defensive end invests his signing bonus of $9,600,500.00 in a mutual fund. The fund pays on average 6.00% APR. The player will not touch this money until he retires from the league in 10.00 years. How much will this “nest egg” be worth at retirement?

Answer Format: Currency: Round to: 2 decimal places.

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Answer #1

Present Value of Fund = $9,600,500

APR = 6%

Period = 10 years

Future Value of Fund,

FV = PV(1+r)t

Future Value = $17,193,033.31

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