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Good day. I have completed the following table except for line 29 (highlighted in yellow). I need to see the calculation for the total nominal value. I also noticed the total discounted value to be $16,922 less than all of the discounted values. All of the discounted values equals $2672764. Problem 1 (second box) addresses this issue. I need to understand the reason $16,922 was not included in the total discounted value, and check all boxes of problem 1 that apply. I also need a calculation for problem 2 as well. Thank you. 1 Assumptions and Calulated Values 2 Bank Rate Information: 3 Colin's Bank Account Rate (compounded monthly) Monthly Bank Rate Effective Annual Interest Rate 6.0000% 0.5000% 6.1678% Total value $2,097,446 Year 1 $504,000 42,000 11.6189 487,994 Year 2 $524,160 43,680 10.9439 478,030 Year 3 $524,160 43,680|| 10.3081 450,258 Year 4 $545,126 | 45,427 9.7093 441,064 $1,857,346 7 Salary and Bonus Information: Annual Salary (4% COLA adjustment) Monthly Salary 10 Discount factor (based on Cell B4 above) 11 Discounted Annual Salary 12 13 Time-in-League Bonus Discount factor (based on Cell B4 above) 15 Discounted Time-in-League Bonus 16 17 Milestone Bonus 18 Discount factor (based on Cell B5 above) 19 Discounted Milestone Bonus $10,000 14 $10,000 0.9705 9,705 $9,705 $600,000 $150,000 0.9419 141,285 $150,000 0.8872 $133,080 $150,000 0.8356 125,340 $150,000 0.7871 118,065 $517,770 20 $314,617 21 Performance Bonus Discount factor (based on Cell B5 above) 23 Discounted Performance Bonus $75,600 0.9419 71,208 $78,624| 0.8872 $69,755 50 755 $78,624 0.8356 65,698 $81,769 0.7871 64,360|| $271,021 $1,500 25 Monthly Endorsement Contract Payment 26 Discount factor (based on Cell B4 above) 27 Discounted Monthly Endorsement Payment $750 11.6189 8,714 $750 10.9439 $8,208 $16,922 28 29 Contract's Total Nominal Value 30 Contract's Total Discounted Value $2,655,842 1. Given your worksheet calculations, which of the following statements is accurate? Noah's estimate of the value of Colin's contract accurate on either a nominal or discounted basis? Check all that apply. Noah's estimate of the value of Colin's contract is incorrect on a nominal basis, and the error is $63,663. It is appropriate and necessary to discount the endorsement contract using the bank account's effective annual interest rate because of differences in the timing of the compounding of the bank account and that of the payments on the endorsement contract. Noah's estimate of the nominal value of Colin's contract is correct. L 2. The local car dealer creating Colin's endorsement contract can earn 6% (compounded quarterly) on her deposited funds. She would have to deposit e ach quarter, starting exactly two years before the day Colin signs his contract, to fund her endorsement contract. (Note: The future value interest factor of 6% compounded quarterly for eight quarterly periods is 8.4328.] Good day. I have completed the following table except for line 29 (highlighted in yellow). I need to see the calculation for the total nominal value. I also noticed the total discounted value to be $16,922 less than all of the discounted values. All of the discounted values equals $2672764. Problem 1 (second box) addresses this issue. I need to understand the reason $16,922 was not included in the total discounted value, and check all boxes of problem 1 that apply. I also need a calculation for problem 2 as well. Thank you. 1 Assumptions and Calulated Values 2 Bank Rate Information: 3 Colin's Bank Account Rate (compounded monthly) Monthly Bank Rate Effective Annual Interest Rate 6.0000% 0.5000% 6.1678% Total value $2,097,446 Year 1 $504,000 42,000 11.6189 487,994 Year 2 $524,160 43,680 10.9439 478,030 Year 3 $524,160 43,680|| 10.3081 450,258 Year 4 $545,126 | 45,427 9.7093 441,064 $1,857,346 7 Salary and Bonus Information: Annual Salary (4% COLA adjustment) Monthly Salary 10 Discount factor (based on Cell B4 above) 11 Discounted Annual Salary 12 13 Time-in-League Bonus Discount factor (based on Cell B4 above) 15 Discounted Time-in-League Bonus 16 17 Milestone Bonus 18 Discount factor (based on Cell B5 above) 19 Discounted Milestone Bonus $10,000 14 $10,000 0.9705 9,705 $9,705 $600,000 $150,000 0.9419 141,285 $150,000 0.8872 $133,080 $150,000 0.8356 125,340 $150,000 0.7871 118,065 $517,770 20 $314,617 21 Performance Bonus Discount factor (based on Cell B5 above) 23 Discounted Performance Bonus $75,600 0.9419 71,208 $78,624| 0.8872 $69,755 50 755 $78,624 0.8356 65,698 $81,769 0.7871 64,360|| $271,021 $1,500 25 Monthly Endorsement Contract Payment 26 Discount factor (based on Cell B4 above) 27 Discounted Monthly Endorsement Payment $750 11.6189 8,714 $750 10.9439 $8,208 $16,922 28 29 Contract's Total Nominal Value 30 Contract's Total Discounted Value $2,655,842 1. Given your worksheet calculations, which of the following statements is accurate? Noah's estimate of the value of Colin's contract accurate on either a nominal or discounted basis? Check all that apply. Noah's estimate of the value of Colin's contract is incorrect on a nominal basis, and the error is $63,663. It is appropriate and necessary to discount the endorsement contract using the bank account's effective annual interest rate because of differences in the timing of the compounding of the bank account and that of the payments on the endorsement contract. Noah's estimate of the nominal value of Colin's contract is correct. L 2. The local car dealer creating Colin's endorsement contract can earn 6% (compounded quarterly) on her deposited funds. She would have to deposit e ach quarter, starting exactly two years before the day Colin signs his contract, to fund her endorsement contract. (Note: The future value interest factor of 6% compounded quarterly for eight quarterly periods is 8.4328.]

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