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Use the following to answer questions 28 29 (round to nearest whole dollar) The four actors below have just signed a contract to star in

Use the following to answer questions 28 29 (round to nearest whole dollar)

The four actors below have just signed a contract to star in a comedy. Each person signs independent contracts with

the following terms:

Contract amount:

How contract is paid

Actor 1

$1,000,000

Lump sum in 4 years

Actor 2

1,050,000

Lump sum in 5 years

Actor 3

350,000

Every year for 3 years

Actor 4

262,500

Every year for 4 years

Assume an annual discount rate of

5%

(

compounded annually

28. $_________What is the value of the lowest value contract today (round to nearest dollar)?

29. $_________What is the value of the highest paid contract today (round to nearest dollar)?

30. $_____________You would like to start saving for retirement. Assuming you are now 22 years old and you want to retire at age 60 , you have 38 years to watch your investment grow. You decide to invest in the stock market, which you expect it to earn about 6% per year into the future. You decide to invest $600 at the end of each month for the next 38 years (456 months). Calculate your accumulated investment at the end of 38 years. Round to nearest whole dollar.

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