A creative general manager has offered two different contracts to a vain quarterback. The contracts are shown below:

CONTACT ACONTRACT B

YEAR

SALARY

YEAR

SALARY

0

$503,700.00

0

$303,650.00

1

$503,700.00

1

$303,650.00

2

$503,700.00

2

$802,150.00

3

$503,700.00

3

$802,150.00

4

$503,700.00

4

$802,150.00

The newspapers report the total dollars of the contract, so contract A will pay a total of $2,518,500.00, while contract B will pay $3,013,750.00. The player will select contract B as it has more publicity. The team can earn 8.00% on their investments, so let's determine the value of each contract.