A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $120,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract terms, the athlete will receive how much more money by choosing Team L over Team K ?
Select:
A) $3,500  B) $5,000  C) $2,500  D) $9,700  E) $10,000
Team K's contract = $120,000 + $120,000*1.2 + $120,000*1.2*1.2 + $50,000 = $486,800   Team L's contract = $150,000 + $150,000*1.1 + $150,000*1.1*1.1 = $496,500   The difference = $9,700.   Answer: $9,700.
<result>D</result>
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $120,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract terms, the athlete will receive how much more money by choosing Team L over Team K ?