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Real-Life Math -- Solution

Here's what you made with the Kickers:

$38,000 starting amount + $10,000 signing bonus = $48,000

Then you have to add the bonus for goals scored:

12 goals x $2,000 per goal = $24,000

$48,000 + $24,000 = $72,000

Finally, you need to add the retirement fund contribution:

5 percent of $72,000
$72,000 x 0.05 = $3,600
$72,000 + $3,600 = $75,600

The contract with the Kickers proved to be more money this year: $75,600 versus the $74,000 flat rate contract.


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