Hello - my colleague has asked me to calculate the following and I'm a little confused. Assume the following: a consultant will be paid 10% of a net annual fee multiplied by the term of the contract, discounted at 5% per year. The facts are as follows:

Net Annual Fee = $300,000

Term of Contract = 5 years

What would the year 1-5 payments be to the consultant using that formula? What formula is used to solve?

Thanks!

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