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The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms:

$\backslash$table$[[,$Contract Terms$],[,\backslash$table$[[$Contract$],[$Amount$]],\backslash$table$[[$Payment$],[$Date$]]],[,$$$430,000,2$ years$],[,470,00,3$ years$],[$Meredith$,370,000,$Today$],[$George$,330,000,1$ year$]]$

Required:

$1-$a$.$ Assuming an annual discount rate of $8\%,$ calculate the present value of the contract amount.

$1-$b$.$ Which of the four actors is actually being paid the most?

Complete this question by entering your answers in the tabs below.

Req $1A$

Req $1$B

Assuming an annual discount rate of $8\%,$ calculate the present value of the contract amount. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places.$)$

$\begin{array}{cc}?& Present\text{V}\text{a}\text{l}\text{u}\text{e}\\ \text{D}\text{e}\text{r}\text{e}\text{k}& ?\\ \text{I}\text{s}\text{a}\text{b}\text{e}\text{l}& ?\\ \text{M}\text{e}\text{r}\text{e}\text{d}\text{i}\text{t}\text{h}& ?\\ \text{G}\text{e}\text{o}\text{r}\text{g}\text{e}& ?\end{array}$

Req$1A$

Req$1B$

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NextThe four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms:

Contract Terms

Contract Amount Payment Date

Derek $$430,0002$ years

Isabel $470,0003$ years

Meredith $370,000$ Today

George $330,0001$ year

Required:

$1-$a$.$ Assuming an annual discount rate of $8\%,$ calculate the present value of the contract amount.

$1-$b$.$ Which of the four actors is actually being paid the most?