Stipulated that the pain and suffering plus legal expenses

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Reference no: EM131022494

It is now December 31, 2015 (t=0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2014 accident. She requested recovery of lost wages plus $300,000 for pain and suffering plus $60,000 for legal expenses. Her doctor testified that she has been unable to work since the accident and will not be able to work in the future. She is now 62, and the jury decided that she would have worked for another three years. She was scheduled to make $36,000 in 2014 (entire amount was received 12/31/2014). Her employer testified that she probably would have received raises of 3% per year. The actual payment for the jury award will be made of December 31, 2016. The judge stipulated that all dollar amounts are to be adjusted to a present value basis on Dec. 31, 2016, using an 8% annually compounded interest rate. Furthermore, he stipulated that the pain and suffering plus legal expenses should be based on a Dec. 31, 2015 date. How large a check must the city write on December 31, 2016?

Reference no: EM131022494

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