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The four actors below have just signed a contract to star in a dramatic movie ab

ID: 2447313 • Letter: T

Question

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 $560,000 2 years

Isabel 600,000 3 years

Meredith 460,000 Today

George 460,000 1 year

  

Assuming an annual discount rate of 10%, 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.)

(Present Value )

Derek ??
Isabel ??

Meredith ??

George ??

Which of the four actors is actually being paid the most?

Required: 1-a.

Assuming an annual discount rate of 10%, 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.)

(Present Value )

Derek ??
Isabel ??

Meredith ??

George ??

Which of the four actors is actually being paid the most?

Derek? Isabel? Meredith? George?

Explanation / Answer

Summary statistics for two samples

Q-Mart

Other Charges

Sample sizes

13

25

Sample means

192.81

104.47

Sample standard deviations

115.243

71.139

Confidence interval for difference between means

Sample mean difference

88.34

Pooled standard deviation

88.323

Std error of difference

30.201

Summary statistics for two samples

Q-Mart

Other Charges

Sample sizes

13

25

Sample means

192.81

104.47

Sample standard deviations

115.243

71.139

Confidence interval for difference between means

Sample mean difference

88.34

Pooled standard deviation

88.323

Std error of difference

30.201

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