10. Maria is 40 years old and was recently injured in a work-related accident. As part of her workers' compensation case, the company has agreed to the following structured settlement: $500,000 for her current medical costs. $55,000 immediately and once every ten years thereafter, with the last payment at age 60, to pay for a new vehicle 0 Vehicle costs are assumed to increase by 3% per year Her lost potential, future wages from age 40 to age 60 (normal retirement age for the company pension plan is age 60) o She currently makes $100,000 per year o Expected salary increases for her role would be 2.5% per year o Assume the salary is payable in full at the beginning of each year of age $1,000,000 at age 60 to pay the approximate present value for the reduction in her retirement benefits (all already determined by the court) You are also given the following information: i = 5% All payments are dependent upon Maria's survival Mortality and other decrements follow the Service Table' tab in the 'fall-2018-tam-tables.xlsx spreadsheet, without any increase in assumed mortality Calculations will assume that Maria would retire at exact age 60 Calculate the present value of the structured settlement. 10. Maria is 40 years old and was recently injured in a work-related accident. As part of her workers' compensation case, the company has agreed to the following structured settlement: $500,000 for her current medical costs. $55,000 immediately and once every ten years thereafter, with the last payment at age 60, to pay for a new vehicle 0 Vehicle costs are assumed to increase by 3% per year Her lost potential, future wages from age 40 to age 60 (normal retirement age for the company pension plan is age 60) o She currently makes $100,000 per year o Expected salary increases for her role would be 2.5% per year o Assume the salary is payable in full at the beginning of each year of age $1,000,000 at age 60 to pay the approximate present value for the reduction in her retirement benefits (all already determined by the court) You are also given the following information: i = 5% All payments are dependent upon Maria's survival Mortality and other decrements follow the Service Table' tab in the 'fall-2018-tam-tables.xlsx spreadsheet, without any increase in assumed mortality Calculations will assume that Maria would retire at exact age 60 Calculate the present value of the structured settlement