Problem $5-20$ Annuities $($LO$3)$

A famous quarterback just signed a $$10\mathrm{.}5$ million contract providing $$2\mathrm{.}1$ million a year for $5$ years. A less famous receiver signed a

$$10\mathrm{.}0$ million $5-$year contract providing $$4$ million now and $$1\mathrm{.}2$ million a year for $5$ years. The interest rate is $10\%.$

a$.$ What is the PV of the quarterback's contract?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.

Present value

million

b$.$ What is the PV of the receiver's contract?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $2$ decimal places.

Present value

million

c$.$ Who is better paid?

Quarterback

Receiver