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 $$440,0002$ years

Isabel $480,0003$ years

Meredith $370,000$ Today

George $340,0001$ year

Required:

$1-$a$.$ Assuming an annual discount rate of $9\%,$ calculate the present value of the contract amount.

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