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

A famous quarterback just signed a $$18$ million contract providing $$3\mathrm{.}6$ million a year for $5$ years. A less famous receiver signed a $$17\mathrm{.}0$

million $5-$year contract providing $$4$ million now and $$2\mathrm{.}6$ 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?

multiple choice

Quarterback

Receiver