1.You are serving as a foreman on a jury which began in January 2020. A 20 year-old plaintiff is suing the town of Wakefield, RI for injuries sustained after falling down an uncovered manhole in 2018. In the trial, doctors testified that it will be 5 years before the plaintiff is able to return to college. The jury has already decided in favor of the plaintiff. You and your co-jurors propose that the plaintiff receives the following judgement:

i) 2 years of back pay ($54,000 in 12/2018, $62,000 in 12/2019). Assume that it is January 1 2020 and that all salary is received at year end.

ii) 5 years of future salary (2020-2024). Assume that the plaintiff's salary would increase at a rate of 3.5 percent per year.

iii) $100,000 for pain and suffering

iv) $20,000 for court costs.

What is the size of the settlement if current interest rate is 7 percent?