Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are serving on a jury. a plaintiff is suing th

You are serving on a jury. A plaintiff is suing the city for injuries sustained after...

80.2K

Verified Solution

Question

Finance

You are serving on a jury. A plaintiff is suing the city forinjuries sustained after a freak street sweeper accident. In thetrial, doctors testified that it will be five years before theplaintiff is able to return to work. The jury has already decidedin favor of the plaintiff. You are the foreperson of the jury andpropose that the jury give the plaintiff an award to cover thefollowing: (a) The present value of two years’ back pay. Theplaintiff’s annual salary for the last two years would have been$43,000 and $46,000, respectively. (b) The present value of fiveyears’ future salary. You assume the salary will be $51,000 peryear. (c) $150,000 for pain and suffering. (d) $20,000 for courtcosts.
Assume that the salary payments are equal amounts paid at theend of each month. If the interest rate you choose is an EAR of 6.5percent, what is the size of the settlement? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

Answer & Explanation Solved by verified expert
3.9 Ratings (521 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Bio Labs is a genetic engineering firm manufacturing a variety of gene-spliced, agricultural-based seed products. The...

Medical Sciences
1.2K views

Messages are transmitted from one neuron to another via the synapse process. IN YOUR OWN WORDS:...

Psychology
1.2K views

Go to Religion Facts and review the religion charts. If the link does not open for...

Psychology
1.2K views

What does the American Dream look like in 2018? Does the American Dream even still exist?...

Physics
1.2K views

A uniform wire of resistance 3652 is bent in the form of a circle The...

Geometry
1.2K views

20 rotation 900 origin D siter H 22 rotation 180 about the origin B Ay...

Basic Math
1.2K views

According to U S government statistics mononucleosis mono is four times more common among college...

Calculus
1.2K views

tempt 1 0 5 points eing dumped from a conveyor belt at a rate o...

Algebra
1.2K views

O O O O AINY MAS SHARES OUTSTANDING 5 575 shares 55 750 shares 5...

Accounting
1.2K views

7 Garden Depot is a retailer that is preparing its budget for the upcoming fiscal...

Accounting
1.2K views

Condensed financial data of Waterway inc. follow. Additional information: 1. New plant assets costing $100,200...

Finance
1.2K views

Recent sales of some real estate and record profits make it possible for a manufacturer...