You are serving on a jury. A plaintiff is suing the city for Injuries sustained after a freak street sweeper accident. In the trial, doctorstestified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff. Youare the foreperson of the Jury and propose that the Jury give the plaintiff an award to cover the following: (a) The present value of twoyears' back pay. The plaintiff's annual salary for the last two years would have been $41,000 and $44,000, respectively. (b) The presentvalue of five years' future salary. You assume the salary will be $48,000 per year. (c) $100,000 for pain and suffering. (d) $20,000 forcourt costs.Assume that the salary payments are equal amounts paid at the end of each month. If the Interest rate you choose is an 8% EAR, whatis the size of the settlement? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign inyour response.)Size of the settlementIf you were the plaintiff, would you like to see a higher or lower Interest rate?O Higher Interest rateO Lower Interest rate

To solve this problem, you need to understand the concept of the time value of money and how to…

Answered: You are serving on a jury. A plaintiff…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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