Selling a Business and Reinvesting Proceeds

[math_celebrity]

If a business sells for $1,000,000 (hypothetically)and the proceeds are paid out over 5 years, using the following breakdown:
10% in the first year
15% in the second year
25% in years 3 through 5

Calculate the payouts:

• Year 1: 10% * $1,000,000 = $100,000
• Year 2: 15% * $1,000,000 = $150,000
• Year 3: 25% * $1,000,000 = $250,000
• Year 4: 25% * $1,000,000 = $250,000
  
• Year 5: 25% * $1,000,000 = $250,000

To check our work, add up our proceed payouts:
$100,000 + $150,000 + $250,000 + $250,000 + $250,000 = $1,000,000