Reference no: EM133071461

Question - PV and a lawsuit settlement - It is now December 31, 2013 (t = 0), and a jury just found in favor of a woman who sued the city for injuries sustained in a January 2012 accident. She requested recovery of lost wages plus $50,000 for pain and suffering plus $10,000 for legal expenses. Her doctor testified that she has been unable to work since the accident and that she will not be able to work in the future. She is now 62, and the jury decided that she would have worked for another 3 years. She was scheduled to have earned $33,000 in 2012. (To simplify this Problem, assume that the entire annual salary amount would have been received on December 31, 2012.) Her employer testified that she probably would have received raises of 3% per year. The actual payment for the jury award will be made today, December 31, 2013. The judge stipulated that all dollar amounts are to be adjusted to a present value basis, using a 6% annual interest rate using compound, not simple, interest. How large a check must the city write today?