A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $440,000 a year for the next 20 years. The attorney for the plaintiffs estate argues that the lost income should be discounted back to the present at 8 percent. ine lawyer for the defendant's insurance company argues for a discount rate of 12 percent. What is the difference between the present value of the settlement at 8 percent and 12 percent? Compute each one separately. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value PV at 8% rate PV at 12% rate Difference Appendile now that mamutya SP A 5.146 4368 320 4580 5601 5417 5242 50784917 4 767 4623446 4355 572 5.786 5502 539 5 206 .032 436 7.652 7 325 2020 6.733 6.463 5210 5971 5.742 5535 5.335 R162 74367.100 .802 6247 995 5750 5471 BB 8530 8.11 7.722 7360 7 024 6710 6418 145 50358 9.253 8.750 8306 7 887 7 499 7.139 6.805 5.495 10.575 954 9 1633 47947.530 7.161 814 12.134 11 348 10635 9986 9394 8.8538358 7904 7482 7.103 130041221061129610 9 03 925 S 1244 77067367 13.865 11.118 10 380 9.712 3.108 8.559 0.061 5.207 403 5.750 902 15 562 14292 13.166 12.166 11 274 10477 9.763 9.122 546 80227.549 7.120 1679 1499212756 12650 1160090328100 07722756201 7.702 7250 17226 5678 14324 13.13612085 1.158 10336 604 3950 3657835 7366 58 ODS 13990 12.462 11470 5049818 1 398514 7957 220739527741210214096279540759007791427734 25 909 22 396 19600 1729215 372 1376512409 25 102749.427 869 8 OSS 3203 273552311543.733 17.153 15.046 3332 53.926 0757 3.779 0 57 2244 39.96 31424 25 730 26.482 13.256 15762 13.801 2.233 10.962 9.915 904 8.304 Agentia Dicenduded) Pent a ulty of 33 SO 0667 714 1589 1.407 2035 2257 2231 0 4 16 201 5 20% 35% 0.885 0877 870 0362 0855 347 4 0033 000 762 741 1.647 1626 1605 585 566 1.547 .528 1.440 1 361 1.289 2.351 2322 2.283 2.246 2210 2.174 2.140 2.106 1952 1816 1696 2.974 29142855 27982743 2.690 2639 2.5892.352 2.166 3.517 3.4333.352 3274 3.1993.127 3.058 2.991 2.589 2436 2220 3.99838893.784 3.685 35893.498 3.410 2326 2951 2643 2.395 4.423 42584.160 4039 39223812 3706 605 7151 2302 2.908 4.799 46794487 744207 4070 2964 7237 2229 2.925 2.50 5132 49G 4772 4GOJ 4451 4.303 4163 4001 140 1019 5.426 216 5019 4833 4650 4.404 40 4.192 3571 1002 2715 5.687 5453 5.234 5.029 4.8.36 4.656 4.456 4.327 656 147 2.752 5918 5.660 5421 5197 4988 4.293 4.611 4.439 3.725 3.190 2.779 6.722 58425 583 5.342 5.1184.910 4,715 4.533 3.780 3223 2.799 6.302 6.002 57245.4585229 5.000 4802 4.611 3824 3249 2814 6452 6142 5.847 5575 5324 5.092 4875 4.575 3.8593 268 2825 5604 265 5954SFER 5.405 5.162 4928 4730227 223 224 6720 773 5047570 5.475 222 4 4 .725 1910 3295 540 467 5123 581 5534 273 03401229302106 6938 6550618 .677 584 5:216 5070 4.843 2042 2011 2.340 7.025 66236.259 5.929 5628 53535.101 4.670 354 3316 2.850 7.330 68735.454 OST 5.7665.467 5195 4.948 3.985 3329 2856 7.495 7.003 6.566 6.177 5829 5.517 5.235 4.979 3.995 3332 7.634 7.1056642 5233 58715.548 5.258 4.997 3.999 3.3332.857 7.675 7.133 6661 5285 58805 554 5262 4.999 4.000 3333 2857 2414 243 2456 2429 2.500 2 500 2.000 2.000
