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How much is the contract worth now

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Suppose you were a writer and you just signed a contract with a publisher in which you will receive the following payments for the next five years: $10,000, $20,000, $30,000, $40,000, and $50,000 (from t=1 to t=5). You will then receive an annuity of $85,000 a year from Year 6 (t=6) through the Year 15 (t=15). The appropriate discount rate is 10 percent compounded annually. How much is the contract worth now (at t=0)?

Reference no: EM133061867

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