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:

	Contract Terms
	Contract Amount	Payment Date
Derek	$490,000	2 years
Isabel	530,000	3 years
Meredith	420,000	Today
George	390,000	1 year

Required:

1-a. 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 appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)

So the only one I got right was Meredith 420,000.00

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

• Isabel

• George

• Derek

• Meredith