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A rookie quarterback is negotiating his first NFL contract. His opportunity cost is B\%. He has been offered three possible 4 -year contracts. Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: Contract Contract As his adviser, which contract would you recommend that he accept? Select the correct answer. a. Contract 2 gives the quarterback the highest present value; therefore, he should accept Contract 2 . b. Contract 1 gives the quarterback the highest present value; therefore, he should accept Contract 1. c. Contract 3 gives the quarterback the highest present value; therefore, he should accept Contract 3. d. Contract 1 gives the quarterback the highest future value; therefore, he should accept Contract 1 . 3. Contract 3 gives the quarterback the highest future value; therefore, he should accept Contract 3 . 1. Problem 5.03 (Finding the Required Interest Rate) Your parents will retire in 16 years. They currently have $220,000 saved, and they think they will need $1,500,000 at retirement. What annual intereat rate must they eam to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. owyer Corporation's 2018 sales were $13 mililon. Its 2013 sales were $6.5 million. a. At what rate have sales been growing? Round your answer to two decimal places, 40 b. Suppose someone made this statement: "Sales doubled in 5 years. This represents a growth of 100% in 5 years; so dividing 100% by 5 , we find the growth rate to be 20% per yeac" Is the statement correct? Find the future values of these ordinary annuities, Compounding occurs once a year, Do not round intermedlate calculations. Round your answers to the nearest cent. a. $300 per year for 12 years at 4%. b. $150 per year for 6 years at 215 . c. $900 per year for 6 years at 0%. 5 d. Rework parts a,b, and c assuming they are annuities due. Future vahue of $300 per year for 12 years at 4 Wi: :5 Future value of 3150 per year for 6 years at 2%:5 Future value of 5900 per year for 6 years at 0%:5 Find the interest rates earned on each of the following. Round your answers to the nearest whole number. a. You borrow $720 and promise to pay back $756 at the end of 1 year. % b. You lend $720 and the borrower promises to pay you $756 at the end of 1 year. % c. You borrow $66,000 and promise to pay back $76,513 at the end of 5 years. % d. You borrow $9,000 and promise to make payments of $2,684,80 at the end of each year for 5 years. 9 b. What are the PVs of the streams at a ow discount rate? Round your answars to the neareat dollac. Stream A: is Stream B: 8 6. Problem 5.06 (Future Value: Annuity Versus Annuity Due) What's the future value of a 6%,5-year ordinary annulty that pays 5500 each year? If this was an annuity due, what would its future value be? Do not round intermediate calculations. Round your answers to the nearest cent. Future Volue of an Ondinary Annulty: 5 Futurn value of an Annulty Due: 5