3) Assume that Mrs. Cooks real income will not change over the next ten years. Use the mean real income from question 1 to determine projected real income for the future ten years of Mrs. Cooks work expectancy. Use the regression equation from question 2 to project adjusted price indices for the next ten years. Assume that Mrs. Cook pays 20% of her actual income in taxes and that Green will not provide significant state assistance. Use the projected real income and adjusted price indices to estimate Mrs. Cooks net actual income for the next ten years. What would be the likely amount of an award to Mrs. Cook based on a present value rate of 8%? Discuss the factors that could cause Mrs. Cooks future income to differ from your estimate.

Number	Year	Gross Income	Price Index
1	2004	60,056	188.9
2	2005	61,257	195.3
3	2006	62,482	201.6
4	2007	63,732	207.3
5	2008	65,007	215.3
6	2009	66,307	214.5
7	2010	67,633	218.1
8	2011	68,986	224.9
9	2012	70,366	229.6
10	2013	71,773	233.0
11	2014	73,208	236.7
12	2015	74,672	237.0
13	2016	76,165	240.0
14	2017	77,688	245.1
15	2018	79,242	251.1