1- A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $220,000 a year for the next 25 years. The attorney for the plaintiff's estate argues that the lost income should be discounted back to the present at 5 percent. The lawyer for the defendant's insurance company argues for a discount rate of 13 percent.

What is the difference between the present value of the settlement at 5 percent and 13 percent? Compute each one separately(Do not round intermediate calculations. Round your answers to 2 decimal places.)

Present Value

PV at 5% rate _______

PV at 13% rate _______

Difference$ ______